Freedom Broker upgraded Burke & Herbert Financial Services Corp. (BHRB) to Buy from Hold with a price target of $74.00.
The upgrade follows the company's first-quarter 2026 results and the completion of its merger with LINKBANCORP. Burke & Herbert reported adjusted EPS of $1.87, up 3.9% YoY and 10% above expectations.
Revenue reached $84.70 million, up 2.0% YoY but 2.1% below expectations. The company maintained a stable net interest margin and posted strong growth in noninterest income.
Operating expenses increased due to the pending merger with LINKBANCORP. The company reported modest improvement in returns on equity.
The LINKBANCORP merger closed on May 1, 2026. Freedom Broker analyst Mikhail Paramonov said the merger creates 'new opportunities to scale the business.'
In other recent news, Burke & Herbert Financial Services Corp. completed its merger with LINKBANCORP, Inc., effective May 1, 2026. Both companies had received all necessary regulatory approvals.
