Banc of California stock price target raised to $21 from $20 at DA Davidson

Investing.com - DA Davidson has raised its price target on Banc of California (NYSE:BANC) to $21.00 from $20.00 while maintaining a Buy rating on the stock. The $2.57 billion market cap bank currently trades at a P/E ratio of 16.45x, and according to InvestingPro analysis, appears slightly undervalued based on Fair Value estimates.

The firm cited the bank’s recent quarterly performance, which demonstrated its ability to generate core net interest income growth and net interest margin expansion despite the absence of loan or balance sheet growth.

DA Davidson noted that Banc of California successfully controlled expenses while deploying capital for share repurchases and increasing its Common Equity Tier 1 (CET1) ratio during the quarter.

The research firm characterized the quarterly results as "clean" and expressed expectations for an upward trajectory in earnings per share, pre-provision net revenue, and overall profitability moving forward.

These positive factors collectively supported DA Davidson’s decision to maintain its Buy rating while raising the price target by $1.00.

In other recent news, Banc of California reported impressive earnings for the third quarter of 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.38, exceeding the forecasted $0.32. This represents an 18.75% surprise in earnings performance. Additionally, Banc of California’s revenue reached $287.7 million, slightly above the anticipated $283.45 million. These results highlight the company’s strong financial performance in the recent quarter. Despite this, the company’s stock experienced a decline, though it saw a minor increase in premarket trading. Investors may find these developments noteworthy as they assess Banc of California’s financial health and market position.

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