Stephens has raised its price target for AvidBank Holdings Inc. to $35 from $30 while retaining an Overweight recommendation on the shares. The stock was trading at $29.80 at the time referenced in the report, and analyst targets cited ranged between $33 and $37.
The bank reported fourth-quarter operating earnings per share of $0.65, below Stephens estimate of $0.75 and the broader Street consensus of $0.76. Despite the EPS miss, Stephens increased its operating earnings-per-share forecast for 2026 by 13.5% following the quarter.
Data referenced from InvestingPro indicated that three analysts raised their earnings forecasts for the upcoming period, with the consensus FY2026 EPS estimate sitting at $3.40. Separately, Stephens adjusted its own 2026 operating EPS outlook to $3.50 from $3.09.
Operationally, the quarter delivered marked balance-sheet momentum. AvidBank posted annualized loan growth of 38.5% and deposit growth of 26.5% for the period. The bank also recorded 72% growth in non-interest-bearing deposits on a linked-quarter annualized basis. Management reiterated plans to pursue balance-sheet growth of 10% to 15% going forward and indicated an intention for non-interest-bearing deposit growth to at least keep pace with that overall expansion target.
Stephens expects net interest margin (NIM) to widen by 18 basis points in the first quarter. The firm attributed most of that projected improvement to two factors: a 12-basis-point tailwind from the dissipation of non-performing loan reversal effects and improvements in late-quarter deposit costs. In the reported quarter, the spot cost of interest-bearing deposits ended 27 basis points lower than the quarterly average, a point Stephens highlighted as supportive of margin outlook.
The broker described commentary on additions to non-performing loans as constructive and suggested positive resolution of these items is likely in coming quarters. The firms analysis therefore drove the upward revisions to AvidBanks earnings outlook and the higher price target.
On the revenue side, AvidBanks fourth-quarter results included revenue of $26.78 million, which exceeded the cited expectation of $25.97 million. The companys EPS of $0.65 did not meet the $0.76 forecast cited by analysts. There were no reports of mergers or acquisitions in the recent disclosures, and the note indicated analyst opinions on the companys stock had not been otherwise updated in the latest reporting cycle.
Shares of AvidBank have delivered strong market performance recently, with a year-to-date gain of 12% and a 21% increase over the past six months, according to the metrics included in the report.
Summary: Stephens raised its AvidBank price target to $35 from $30 and maintained an Overweight rating after the bank reported mixed Q4 results: EPS below estimates but stronger-than-expected revenue and significant loan and deposit growth. The broker expects NIM expansion in Q1 and raised its 2026 operating EPS projection.