Piper Sandler Notes Interest Reversals Hurt CF Bankshares (CFBK) Earnings

CF Bankshares Inc. (NASDAQ:CFBK) is included among the 12 Best Micro-Cap Dividend Stocks to Buy Now.Piper Sandler Notes Interest Reversals Hurt CF Bankshares (CFBK) Earnings

On May 11, Piper Sandler analyst Adam Kroll lowered the firm’s price target on CF Bankshares Inc. (NASDAQ:CFBK) to $33.50 from $34 and maintained an Overweight rating on the shares. The firm said the company reported a mixed quarter. An increase in non-performing loans tied to one non-core relationship led to $0.5 million in interest reversals and contributed to the shortfall in PPNR and EPS results.

Earlier in April, Piper Sandler initiated coverage on CF Bankshares with an Overweight rating and a $34 price target, up from $29.The firm said the company’s turnaround following its 2012 recapitalization had been “nothing short of impressive.” Piper also pointed to CF Bankshares’ stronger-than-peer organic balance sheet growth outlook, along with expectations for modest net interest margin expansion that could support additional profitability improvement toward peer levels. The analyst also highlighted the company’s relatively discounted valuation.

CF Bankshares Inc. (NASDAQ:CFBK) is the holding company for CFBank, National Association. CFBank operates as a commercial bank across five major metro markets, including Columbus, Cleveland, Cincinnati, and Akron, Ohio, along with Indianapolis, Indiana. The bank provides commercial, retail, and mortgage lending services to businesses and entrepreneurs.

While we acknowledge the potential of CFBK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 14 Best Dividend Stocks to Buy for Steady Growth and 10 Best Robinhood Stocks to Buy According to Billionaires.

Disclosure: None. Follow Insider Monkey on Google News.

View Comments