DA Davidson raises Axos Financial stock price target to $106 on Verdant acquisition

Published 24/09/2025, 14:22
DA Davidson raises Axos Financial stock price target to $106 on Verdant acquisition

Investing.com - DA Davidson raised its price target on Axos Financial (NYSE:AX) to $106.00 from $100.00 on Wednesday, while maintaining a Buy rating on the financial services company. Trading at $88.46, the $5 billion market cap company currently trades at an attractive 11.9x P/E ratio. According to InvestingPro data, Axos has demonstrated strong momentum with a 32% return over the past six months.

The price target increase follows Axos Financial’s announcement that it will acquire Verdant Commercial Capital, a $1.1 billion asset leasing company focused on six core industry verticals.

According to DA Davidson, the transaction is expected to be modestly accretive to Axos Financial’s fiscal 2026 and fiscal 2027 earnings.

The firm noted that the acquisition is expected to serve as a scalable driver of net interest income and fee income for Axos Financial, while further diversifying and adding duration to the company’s loan book.

DA Davidson also highlighted that the Verdant acquisition provides "additional validation of AX’s ability to source and execute acquisitions of complementary business lines."

In other recent news, Axos Financial has announced several significant developments. The company reported strong fiscal year 2025 performance, surpassing Wall Street expectations for both revenue and earnings. This outperformance was driven by a higher net interest margin and increased fee income, prompting Needham to raise its price target on Axos Financial to $102.00 while maintaining a Buy rating. Additionally, Axos Bank, a subsidiary of Axos Financial, acquired Verdant Commercial Capital for approximately $43.5 million in cash. This acquisition includes Verdant’s portfolio of about $1.1 billion in loans and leases.

Axos Financial also completed a $200 million subordinated notes offering, with the notes priced at a 7.00% fixed-to-floating rate. The transaction was managed by Keefe, Bruyette & Woods, who have reiterated their Market Perform rating on the stock. They anticipate Axos will redeem $160.5 million of existing subordinated debt soon, which is expected to have minimal impact on the company’s capital. The notes will initially bear interest at 7.00% per year, with a conversion to a floating rate starting in 2030. These recent developments reflect Axos Financial’s strategic financial maneuvers and market positioning.

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