KBW Reiterates Market Perform on Preferred Bank

KBW reiterated its Market Perform rating on Preferred Bank PFBC after the company's annual meeting, where its shareholders approved a 1-for-5 reverse stock split. In a research report published today, KBW states, "At their annual meeting, Preferred Bank shareholders approved a 1-for-5 reverse stock split. The effective date is contingent upon approval by the California DFI as well as the decision by the Board of Directors as to the most advantageous timing. Revising estimates post 1Q results. We remain Market Perform on the name at this time. We prefer to wait until the stock split would be effective before revisiting our recommendation." At the moment, KBW has a price target on the stock set at $1. On Wednesday, Preferred Bank's shares rose 2.6% to end the day at $1.58.