Update shared on08 Oct 2025
Fair value Increased 4.28%The analyst price target for Banc of California has risen from $18.05 to $18.82 per share. This change reflects analysts' improved outlook based on anticipated reductions in funding costs as well as stronger loan and deposit growth projections for 2025.
Analyst Commentary
Recent research and rating actions have highlighted both the optimistic expectations and potential concerns surrounding Banc of California's forward outlook and valuation.
Bullish Takeaways- Bullish analysts anticipate a reduction in near-term funding costs, which is expected to support profitability and enhance return metrics.
- The improved loan and deposit growth projections for 2025 are contributing to higher price targets and a more favorable growth narrative.
- Inclusion on high-profile positive catalyst watch lists signals confidence in meaningful near-term business execution and performance drivers.
- Raised price targets reflect analysts' conviction that valuation could increase if key financial improvements materialize as forecasted.
- Some caution remains around potential headwinds from lower earning asset yields, which could offset benefits from lower funding costs.
- Execution risk is present if anticipated deposit and loan growth falls short of expectations, possibly impacting earnings momentum.
- Ongoing changes in market or economic conditions could dampen currently optimistic outlooks and temper further valuation gains.
What's in the News
- Banc of California completed a significant share buyback, repurchasing 8,809,814 shares between April 1, 2025 and June 30, 2025. This brought the total to 11,494,637 shares bought back under its latest program for $150 million (Key Developments).
- Net charge-offs for the second quarter ended June 30, 2025 declined to $44.2 million from $55.7 million in the same period last year, indicating improved credit quality (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, increasing from $18.05 to $18.82 per share.
- Discount Rate has fallen modestly, moving from 7.86 percent to 7.70 percent.
- Revenue Growth projections have increased slightly, rising from 14.96 percent to 15.27 percent.
- Net Profit Margin estimates have improved, going from 26.52 percent to 27.20 percent.
- Future P/E ratio has edged up marginally, shifting from 7.57x to 7.61x.
Disclaimer
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