In a recent analysis, Keefe Bruyette's analyst Damon DelMonte has adjusted the price target for QCR Holdings (QCRH, Financial), revising it downward from $99 to $90. Despite this decrease in the price target, DelMonte continues to maintain an Outperform rating on the company's shares.
This adjustment reflects a cautious yet positive outlook on the financial institution's future performance. The Outperform rating suggests that QCR Holdings is expected to surpass the average market returns, making it a potentially attractive option for investors. DelMonte's analysis is integral for stakeholders trying to gauge the company's trajectory amid broader market conditions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for QCR Holdings Inc (QCRH, Financial) is $89.60 with a high estimate of $95.00 and a low estimate of $80.00. The average target implies an upside of 35.10% from the current price of $66.32. More detailed estimate data can be found on the QCR Holdings Inc (QCRH) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, QCR Holdings Inc's (QCRH, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for QCR Holdings Inc (QCRH, Financial) in one year is $49.25, suggesting a downside of 25.74% from the current price of $66.32. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the QCR Holdings Inc (QCRH) Summary page.
QCRH Key Business Developments
Release Date: April 23, 2025
- Net Income: $26 million for the first quarter of 2025.
- Earnings Per Diluted Share: $1.52 reported, $1.53 adjusted.
- Net Interest Income: $60 million, a $1 million decrease from the previous quarter.
- Adjusted Net Interest Margin (NIM): Increased by 1 basis point on a tax equivalent basis.
- Annualized Loan Growth: 4% when adding back the impact of m2 equipment finance loans runoff.
- Core Deposit Growth: 20% annualized, totaling $332 million.
- Non-Interest Income: $17 million, including $7 million from capital markets revenue.
- Wealth Management Revenue Growth: 14% annualized for the quarter.
- Non-Interest Expenses: Decreased by $7 million or 13% to $47 million.
- Allowance for Credit Losses: 1.32% of total loans held for investment.
- Provision for Credit Losses: $4 million, a decrease of $915,000 from the prior quarter.
- Tangible Book Value Per Share Growth: Increased by $1.43, representing 11% annualized growth for the quarter.
- Effective Tax Rate: 1% for the quarter, down from 9% in the prior quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- QCR Holdings Inc (QCRH, Financial) experienced robust deposit growth with a 20% annualized increase, enhancing liquidity and reducing reliance on wholesale funding.
- The company reported strong performance in its wealth management business, with a 14% annualized revenue growth driven by new client accounts and assets under management.
- QCR Holdings Inc (QCRH) maintained excellent asset quality, with non-performing assets remaining well below historic averages and a decrease in total criticized loan balances.
- The company's tangible book value per share increased significantly, growing by 11% annualized for the quarter.
- QCR Holdings Inc (QCRH) demonstrated disciplined expense management, with non-interest expenses decreasing by 13% due to lower capital markets revenue and variable compensation.
Negative Points
- The company suspended its full-year loan growth guidance due to heightened economic uncertainty, projecting only a 4% to 6% annualized growth rate for the second quarter.
- Macroeconomic uncertainty affected the LIHTC lending business, causing project delays and resulting in lower capital markets revenue for the first quarter.
- Net interest income decreased by $1 million from the fourth quarter, although it grew slightly when adjusted for fewer days in the quarter.
- The provision for credit losses was $4 million for the quarter, a decrease from the prior quarter, but net charge-offs increased by $825,000.
- QCR Holdings Inc (QCRH) faces challenges from potential tariff impacts on clients, although the direct exposure is limited to a few companies.
