TD Cowen has reaffirmed its Buy recommendation on Customers Bancorp (NYSE: CUBI) and left its price target unchanged at $95.00 following a notable share price drop after the bank released fourth-quarter 2025 results. The analyst house frames the recent decline as excessive relative to the reported fundamentals.
At the time the target was reiterated the $95.00 price objective implied roughly 23% upside from the then-current share price of $77.11. TD Cowen drew attention to valuation metrics that it considers attractive, including a price-to-earnings ratio of 11.9 and a PEG ratio of 0.53.
Customers Bancorp produced an earnings-per-share beat for Q4 2025, driven by what the firm described as solid top-line performance, balance sheet growth that outpaced peers, and measurable progress on deposit remixing initiatives. Over the last twelve months the bank recorded 12.31% revenue growth, and diluted EPS for the period reached $6.26.
Despite those outcomes the stock sold off by about 8% after the earnings release. TD Cowen suggested the move reflected investor expectations for a stronger 2026 outlook, given the stock's recent outperformance. The broker noted the share price’s sensitivity is consistent with a beta of 1.62; over the prior year CUBI had returned 29.94%.
In TD Cowen’s view the bank’s guidance for 2026 appears conservative, in part because management’s assumptions do not include any lift from cubiX deposits. The analyst firm nevertheless believes Customers Bancorp will likely reach the higher end of its guidance range.
TD Cowen also emphasized Customers Bancorp’s technology orientation, describing it as one of the more tech-savvy institutions within the regional banking cohort. The firm expects the bank to sustain a growth profile that should support both top-line expansion and bottom-line results.
Other broker reactions to the quarterly results varied but were generally favorable. Customers Bancorp reported adjusted EPS of $2.06 for Q4 2025, topping the analyst consensus of $2.03. Revenue, however, missed estimates, with reported sales of $214.61 million versus an anticipated $228.35 million.
Raymond James responded by raising its price target on Customers Bancorp to $100 while maintaining a Strong Buy stance, citing continued business momentum. DA Davidson reiterated its Buy rating and set a $93 price target following the earnings release. DA Davidson had forecast core EPS of $2.07, a penny above the reported $2.06; the result did exceed the broader consensus figure of $2.04.
The reported quarter included a $2.8 million loss tied to the redemption of preferred stock, an item that translated to $0.08 per share. Collectively, these analyst actions and the company’s published results portray a quarter with mixed elements - an earnings beat and solid growth metrics alongside revenue shortfalls and a modest one-time charge.
Investors and market participants will be watching how management’s 2026 assumptions around deposits and growth unfold, and whether execution on deposit remixing and balance sheet expansion supports the higher end of the company’s targets.