why is OFG "Consensus Rating "Buy""

The consensus rating for OFG Bancorp (NYSE: OFG) is "Buy" based on several key factors: 1. **Strong Financial Performance**: OFG Bancorp reported record Q2 results, with net charge-offs improving from the previous quarter, and a notable increase in EPS to $1.15. Total core revenues rose to $182.2 million, reflecting strong loan origination and core deposit flows. 2. **Strategic Digital Transformation**: The company's digital-first strategy has been successful in driving operational efficiency and customer engagement. New digital tools like the Oriental Marketplace and a DGI Money Market fund have contributed to increased digital enrollment and transactions. 3. **Loan Growth and Market Position**: OFG Bancorp experienced a significant rise in new loan production, reaching $783.7 million, up from $558.9 million in the previous quarter. This growth is supported by strategic commercial lending initiatives and a robust pipeline in both Puerto Rico and the U.S. 4. **Dividend and Share Buyback**: The company declared a $0.30 quarterly dividend, offering a forward yield of 2.83%, which is attractive to income-focused investors. Additionally, OFG Bancorp initiated a $100 million share buyback authorization, indicating confidence in its capital base and potential for shareholder returns. 5. **Analyst Confidence**: The average current price target for OFG Bancorp is $49, with a high estimate of $50 and a low of $48. This target suggests potential upside from the current price of $41.72. Analysts have also raised price targets, with Keefe Bruyette increasing theirs to $50, citing a rise in net interest income due to loan growth. 6. **Market Position and Growth Outlook**: OFG Bancorp operates in high-yield retail banking in Puerto Rico, leveraging its digital innovation and disciplined loan growth to capitalize on a stable market environment. The company's strategic focus on commercial lending and digital transformation positions it well for continued growth. These factors collectively support the "Buy" consensus rating for OFG Bancorp, reflecting optimism about its financial performance, strategic initiatives, and growth prospects.