JPMorgan boosts Customers Bancorp’s target by 9% citing AI-driven efficiency gains and solid Q2 fundamentals in small-cap banks.
JPMorgan increased its price target for Customers Bancorp Inc (CUBI) to $94 from $86, maintaining an Overweight rating. The adjustment reflects stable credit trends and growth in loans and deposits across small and mid-cap banks in Q2.
Analysts project over 20% upside for CUBI, which manages $25 billion in assets and operates in multiple states. The bank is leveraging AI to streamline lending and client onboarding, aiming to cut loan timelines without expanding staff. A $100 million stock repurchase plan was also announced.
The brokerage highlighted CUBI’s multiyear deal with OpenAI to automate processes, positioning it as a standout in regional banking for operational efficiency.