Investment research firm Stephens has revised its price target for United Bankshares Inc. (NASDAQ: UBSI) upward to $44.00 from $40.00, while retaining an Equal Weight stance on the stock. This new valuation suggests a slight gain from the current trading price of $42.75, which is close to the stock’s 52-week peak of $43.77, based on InvestingPro data.
The adjustment reflects United Bankshares’ recent quarterly earnings per share (EPS) of $0.92, which notably exceeded the market consensus of $0.86. The outperformance was supported by a reduced provision expense, including a minor $0.01 reserve release, driven by improvements in asset quality metrics on a sequential basis. The company is currently trading at a price-to-earnings (P/E) ratio of 13.08, with anticipated continued profitability into 2026, where EPS is forecasted at $3.47.
Core pre-provision net revenue (PPNR) for the bank also surpassed expectations by 3.2%, fueled by higher net interest income, steady fee income, and decreased expenses. The net interest margin expanded by three basis points from the previous quarter, which was positively influenced by purchase accounting adjustments and deposit cost reductions exceeding forecasts. This strong performance underpins UBSI’s robust stock price appreciation of 18.25% over the past six months and 11.33% year-to-date.
Regarding loan growth, the fourth quarter saw a 3.1% rate on a linked-quarter annualized basis — slightly below estimates — primarily due to peak loan paydowns. United Bankshares anticipates mid-single-digit organic loan growth moving forward. Stephens has adjusted its 2026 PPNR estimate upward by 1.0%, attributing this revision to consistent improvements across revenue and expense lines. The firm's premium valuation is reflective of United Bankshares' above-peer return profile and its surplus capital, which is currently allocated in part to share repurchases.
Additional financial disclosures reveal the company reported fourth quarter net earnings of $128.8 million, translating to $0.91 per diluted share and exceeding analyst expectations of $0.86. The quarter also set a record for net interest income at $287.5 million, a 3% increase from the previous quarter. For the full year 2025, the bank posted record earnings totaling $464.6 million, or $3.27 per diluted share.
Key performance ratios for the quarter include annualized returns on average assets of 1.52%, average equity returns of 9.31%, and average tangible equity returns of 14.86%, illustrating steady operational efficiency and financial stability. These results underscore United Bankshares’ ongoing growth trajectory and solid positioning within the financial services sector.