Wells Fargo Reduces PT on OFG Bancorp (OFG) to $43 From $48

Core Insights - OFG Bancorp is considered one of the most undervalued small-cap stocks currently available for investment [1] - Wells Fargo analyst Timur Braziler reduced the price target for OFG Bancorp from $48 to $43 while maintaining an Equal Weight rating [1][2] - The company is expected to face challenges ahead, including increased deposit competition and potential rate cuts impacting net interest income through most of the first half of 2026 [2] Financial Performance - OFG Bancorp reported a diluted EPS of $1.16 for fiscal Q3 2025, an increase from $1.15 in fiscal Q2 2025 and $1.00 in fiscal Q3 2024 [3] - Total core revenue for fiscal Q3 2025 was $184.0 million, compared to $174.1 million in the same period last year, reflecting a 5.6% growth [3][4] - The CEO, José Rafael Fernández, noted a 16% year-over-year increase in Q3 EPS and highlighted strong performance and credit metrics for the quarter [4] Shareholder Actions - The company repurchased $20.4 million of common shares during the quarter, indicating a commitment to returning value to shareholders [4] Business Segments - OFG Bancorp operates through three main segments: Banking, Wealth Management, and Treasury [4]