Axos Financial, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Kyle Peterson from Needham reiterated a Buy rating on the stock and has a $92.00 price target.
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Kyle Peterson has given his Buy rating due to a combination of factors related to recent changes in California’s tax policy. The new state budget introduces a single-factor apportionment tax system for financial institutions, which calculates taxes based on revenue or income generated within California. This change is expected to lower Axos Financial’s effective tax rate by 3% on a run-rate basis, potentially increasing their annualized earnings per share by $0.30.
Axos Financial’s unique corporate structure, with a significant workforce in California but a national lending presence, positions it to benefit from this tax adjustment. The reduced tax burden is anticipated to enhance the company’s earnings per share and return on capital, justifying the Buy rating and an increased price target of $92.
According to TipRanks, Peterson is a 4-star analyst with an average return of 6.1% and a 50.79% success rate. Peterson covers the Technology sector, focusing on stocks such as Fair Isaac, Alight, and Broadridge Financial Solutions.