Peoples Bancorp (PEBO) Stock Forecast & Price Target

Peoples Bancorp is viewed favorably because 3Q26 showed solid fundamental momentum, with operating EPS of $1.05 beating consensus, NII of $94.1M rising 1% LQ, and core fee income increasing 5% LQ to $30.5M on broad-based strength. Credit quality remained constructive as NPAs fell to $37M and criticized loans declined 6% LQ, while disciplined expense control kept core operating expenses flat at $73.0M and the efficiency ratio at 59%. The outlook is further supported by expanding NIM, strengthened capital ratios, and the pending CBNK acquisition, which should enhance fee diversity, boost profitability toward 1.9% ROA and 19.8% ROTCE in 2028, and make TBV growth more compelling over time.

Peoples Bancorp is facing a negative fundamental setup because loan growth remains weak at 1% EOP and 2% average in LQA, both about 1% below expectations, as elevated $160M payoffs and more selective production limit balance-sheet expansion ahead of the CBNK deal closing in 1H27. Credit quality is also deteriorating, with net charge-offs rising 4 bps sequentially to 35 bps and $6.0M in 3Q versus $5.2M in 2Q, driven by higher C&I, CRE, and indirect consumer losses that outweighed improvement in lease charge-offs. Even though 2027 EPS is lifted to $4.25, the outlook remains cautious because that assumes only partial cost savings and less-than-fully realized merger leverage, while integration and operational risks and elevated expense pressure continue to cloud earnings durability.