In a report released yesterday, Timur Braziler from Wells Fargo reiterated a Buy rating on Banc of California (BANC – Research Report), with a price target of $20.00.
Timur Braziler’s rating is based on several promising factors that suggest a positive outlook for Banc of California. The management’s confidence in expanding net interest margins (NIM) is a significant driver, with expectations for NIM to stabilize around 3.25% in 2025. This is supported by improvements in the deposit mix and strategic repricing, which are anticipated to serve as key tailwinds.
Additionally, loan growth is expected to be robust, driven by sectors such as fund finance, lender finance, and warehouse lending. The management’s conservative approach to expenses, coupled with potential stock buybacks due to attractive share valuations, further strengthens the case for a Buy rating. These factors collectively indicate a favorable financial trajectory for Banc of California, making it an attractive investment opportunity at current levels.
Braziler covers the Financial sector, focusing on stocks such as Bank OZK, Columbia Banking System, and First Interstate Bancsystem. According to TipRanks, Braziler has an average return of 4.4% and a 52.27% success rate on recommended stocks.