Janney upgrades Bank of Princeton to Buy on ‘compelling’ valuation

As previously reported, Janney Montgomery Scott upgraded Bank of Princeton (BPRN) to Buy from Neutral with a $35 fair value estimate after the bank reported Q4 results. The firm, which has revised its 2025 and 2026 EPS estimates to $3.29 and $3.76 from $3.54 and $3.82, respectively, contends that the Q4 deterioration in asset quality was due to two special situation participation credits that it believes are being actively marketed for sale without meaningful additional loss content. The current valuation is “compelling,” as it does not give Bank of Princeton enough credit for the lower relative loan/deposit ratio, lower securities portfolio and higher capital levels it has than peers, the analyst tells investors.