Update shared on 26 Sep 2025
Fair value Increased 11%Analysts have raised their price target for Live Oak Bancshares from $38 to $42, citing expectations for improved credit performance, accelerating loan growth in the second half of 2025, easing regulatory concerns, and potential M&A activity as key catalysts supporting a more favorable outlook.
Analyst Commentary
- Bullish analysts expect credit performance to improve in the second half of 2025, which should alleviate prior investor concerns tied to the recent SBA credit cycle.
- Anticipation of solid loan growth in the second half of the year, following a slower start in the first half, supports a constructive outlook for banking fundamentals.
- Expectations that risk of regulatory tightening is abating, with deregulation anticipated to provide tangible support to sector fundamentals.
- M&A activity and improving market sentiment are seen as catalysts for further upside and potential outperformance among U.S. regional banks.
- Despite recent underperformance after Q3 2024 results, the outlook turns more favorable due to the above catalysts, driving upgraded ratings and raised price targets.
What's in the News
- Live Oak Bancshares added to the Russell 2000 Defensive Index.
- Live Oak Bancshares added to the Russell 2000 Growth-Defensive Index.
- Live Oak Bancshares added to the Russell 2000 Value-Defensive Index.
Valuation Changes
Summary of Valuation Changes for Live Oak Bancshares
- The Consensus Analyst Price Target has significantly risen from $38.00 to $42.00.
- The Future P/E for Live Oak Bancshares has significantly risen from 6.63x to 9.72x.
- The Consensus Revenue Growth forecasts for Live Oak Bancshares has significantly fallen from 37.6% per annum to 28.3% per annum.
Disclaimer
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