BayCom stock price target cut to $30 at DA Davidson, retains buy rating

Published 22/04/2025, 17:06
BayCom stock price target cut to $30 at DA Davidson, retains buy rating

Tuesday, BayCom Corp (NASDAQ:BCML), currently trading at $26.66, experienced a revision in its stock price target as DA Davidson analysts adjusted the figure to $30.00 from the previous $33.00, while sustaining a Buy rating on the shares. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculation. The adjustment follows BayCom’s recent financial report, which met expectations with lower spread income typical of the season, despite a slight net interest margin (NIM) expansion of 3 basis points. The company also reported well-managed expenses and stable asset quality. With a P/E ratio of 12.47 and a solid financial health score rated as "GOOD" by InvestingPro, BayCom demonstrates strong fundamental positioning.

The analysts at DA Davidson anticipate a conservative approach to the company’s share buyback program in the short term. This forecast aligns with BayCom’s likely plan to repay its subordinated debt in the third quarter of the year. The repayment strategy is seen as a move to strengthen the financial structure of the company.

BayCom’s recent quarterly performance showcased a balance between income and expenditure. The company’s ability to control costs while maintaining a consistent asset quality has been noted by the analysts as a positive indicator of its operational efficiency.

The NIM expansion, albeit small, is viewed as a favorable development for BayCom, indicating a potential for increased profitability from lending activities. The NIM is a key metric that reflects the difference between the interest income generated by banks and the amount of interest paid out to their lenders, relative to the amount of their interest-earning assets.

Investors and stakeholders of BayCom are expected to watch the company’s financial maneuvers closely, especially regarding the share buyback program and the repayment of subordinated debt. These actions are significant as they could influence the company’s capital structure and shareholder value. InvestingPro data reveals the company has raised its dividend for three consecutive years and maintains a strong return over the last five years. Subscribers can access additional ProTips and detailed financial metrics to make more informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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