Maxim Group analyst Michael Diana has maintained their neutral stance on WABC stock, giving a Hold rating yesterday.
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Michael Diana has given his Hold rating due to a combination of factors related to both recent performance and forward outlook. He notes that Westamerica Bancorporation modestly exceeded earnings expectations in 1Q26, supported by better-than-anticipated earning assets and a net interest margin that contracted less than forecast, while credit quality and expense discipline remain notably strong.
At the same time, he anticipates a continued runoff in the auto loan book and only slight pressure relief on the net interest margin, which together point to a gradual erosion in profitability over the next several years. Even after raising his EPS estimates for 2026 and introducing 2027 projections, his models still show earnings declining year over year, leading him to see limited upside for the shares at this stage and to reaffirm a Hold stance.
In another report released yesterday, KBW also maintained a Hold rating on the stock with a $58.00 price target.
WABC’s price has also changed moderately for the past six months – from $46.650 to $54.070, which is a 15.91% increase.