City Hld (CHCO) Stock Forecast & Price Target

City Holding Co's stock is viewed positively due to its premium valuation metrics, specifically a price-to-earnings ratio of 15.6x for 2026 estimated earnings per share, alongside a tangible book value per share of 3.1x. Over the past year, 2025 EPS estimates have increased by 24%, driven by resilience in net interest margin (NIM), credit quality, and fee income, as well as ongoing share repurchases. The company reported 6% growth in average earning assets, which contributed to a notable $0.13 beat in net interest income, while its low, stable cost of deposits and increased fee income further support its strong financial position.

The analysis indicates that City Holding Co faces significant risks related to regulatory and political pressures, particularly surrounding revenue generation thresholds that may hinder its financial stability. Historical concerns over the company's ability to maintain revenue in light of these regulatory challenges contribute to a negative outlook, as seen in its declining asset quality metrics with non-performing assets (NPAs) at 0.33% and an allowance for credit losses (ACL) of 0.45%. Additionally, fluctuations in tangible book value (TBV) could directly impact the company's stock value by approximately 5%, further signaling potential volatility in its market performance.