D.A. Davidson analyst Gary Tenner has maintained their bullish stance on AX stock, giving a Buy rating today.
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Gary Tenner has given his Buy rating due to a combination of factors that highlight Axos Financial’s potential for growth and profitability. The company is well-positioned with a diversified model that allows it to capitalize on an improved economic outlook. This positioning is further strengthened by its above-peer growth and profitability, its ability to increase tangible book value, and strong capital reserves. The recent changes in California tax rules regarding multi-state income have also led to increased estimates, adding to the positive outlook for Axos Financial.
Additionally, Axos Financial’s diverse loan portfolio provides significant growth opportunities across various lending cycles. The company has demonstrated consistent loan growth, with fiscal year-to-date growth at 4.7% and expectations for further growth driven by segments such as single-family residential, commercial real estate, and commercial and industrial loans. The asset quality has also shown improvement, with a decline in non-performing assets and substandard loans, which further supports the Buy rating. These factors collectively contribute to the revised price target of $96, reinforcing the positive sentiment around Axos Financial’s stock.
In another report released today, Needham also maintained a Buy rating on the stock with a $92.00 price target.
Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AX in relation to earlier this year.