In a report released yesterday, Timur Braziler from Wells Fargo maintained a Buy rating on Banc of California, with a price target of $16.00.
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Timur Braziler has given his Buy rating due to a combination of factors that suggest potential for future improvement despite current challenges. The report highlights that Banc of California has shown promising loan growth, which exceeded expectations and indicates a positive trajectory in lender finance, fund finance, and residential/consumer loans. This growth was primarily supported by an increase in brokered CDs and wholesale funding, which suggests a strategic approach to strengthening the bank’s financial position.
Moreover, while the quarter was marked by elevated charge-offs and weaker revenues, the bank’s management is actively working to address these issues through the sale of CRE loans, which is expected to improve asset quality metrics. Additionally, the bank’s expense management has been commendable, with expenses coming in lower than anticipated, providing a cushion against revenue shortfalls. These efforts, combined with updated guidance for net interest margin improvement, underpin Braziler’s optimistic outlook for the bank’s future performance.
In another report released today, KBW also maintained a Buy rating on the stock with a $17.00 price target.
Based on the recent corporate insider activity of 44 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 BANC in relation to earlier this year.