These are top 10 stocks traded on the Robinhood UK platform in July
Investing.com - DA Davidson raised its price target on Community West Bancshares (NASDAQ:CWBC) to $24.00 from $20.00 while maintaining a Buy rating on the stock. The bank, currently valued at $391 million, trades at an attractive P/E ratio of 14.7x. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value assessment.
The firm cited the bank’s stable top-line revenue and solid net interest margin expansion as key factors behind the decision. Community West Bancshares reported second-quarter earnings per share of $0.41, which fell below both DA Davidson’s estimate and the Street mean of $0.48. Despite the earnings miss, InvestingPro data shows the company maintains strong fundamentals with a 55.8% revenue growth and consistent dividend payments for 14 consecutive years. InvestingPro subscribers have access to 8 additional key insights about CWBC’s performance.
According to DA Davidson, the earnings miss was primarily attributed to provision expenses, which impacted results by approximately $0.08 per share, and lower fee income, which affected results by about $0.01 per share. These negative factors were partially offset by higher spread income and lower operating expenses. The bank maintains a healthy financial position with a conservative debt-to-equity ratio of 0.41 and a Piotroski score of 6, indicating solid financial strength.
The bank posted loan growth of 8.9% last quarter annualized, exceeding typical growth rates as the second quarter benefited from delayed loan fundings. DA Davidson noted that a mid-single-digit growth outlook remains the expectation for the full year.
Community West Bancshares delivered core pre-provision net revenue per share of $0.70, slightly above DA Davidson’s estimate of $0.69 and representing an improvement from $0.63 reported in the previous quarter.
In other recent news, Community West Bancshares reported a net income of $7.83 million for the second quarter of 2025, marking a turnaround from a net loss in the same period last year. The company also declared a quarterly cash dividend and announced a share repurchase program for up to 3% of its outstanding common stock. Additionally, Community West Bancshares appointed Baker Tilly US, LLP as its new auditor following the merger of its previous auditor, Moss Adams LLP, with Baker Tilly.
Analyst firms have made several adjustments to their price targets for Community West Bancshares. DA Davidson lowered its target to $22.00 while maintaining a Buy rating, citing stable revenue and a solid net interest margin. Piper Sandler reduced its target to $19.00, maintaining an Overweight rating, and noted that the company’s first-quarter earnings per share slightly exceeded consensus estimates. Keefe, Bruyette & Woods also set a price target of $19.00, maintaining a Market Perform rating, and highlighted the company’s focus on expense control and positive operating leverage. These developments reflect the company’s strategic shifts and responses to current economic conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.