Brean downgrades BayCom to Neutral after ‘abrupt’ management change

As previously reported, Brean Capital downgraded BayCom (BCML) to Neutral from Buy with a price target of $32, down from $34, following the “abrupt” replacement of the company’s CEO, CFO and COO, all three of whom were founding executives of the bank. The abrupt management change reflects a change in strategy that likely results in a near-term re-rating of the stock, the analyst argues. The stock had traded on the premise the company was positioned to sell, but the new management team is focused on organic growth and the firm believes a valuation premium for a potential sale could come out of the stock.