Needham raised the firm’s price target on Axos Financial (AX) to $105 from $102 and keeps a Buy rating on the shares. The firm is positive on the acquisition of Verdant Commercial Capital that is expected to be immediately accretive to EPS, especially as Axos should be able to replace Verdant’s higher cost funding with deposits after the transaction closes, the analyst tells investors in a research note. Needham adds that this is a good strategic fit as it helps further bolster the C&I loan book and deploy capital.
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