DA Davidson raises Axos Financial stock price target to $96 on growth outlook

Published 02/07/2025, 15:40
DA Davidson raises Axos Financial stock price target to $96 on growth outlook

Investing.com - DA Davidson has raised its price target on Axos Financial (NYSE:AX) to $96.00 from $92.50 while maintaining a Buy rating on the stock. The $4.55 billion financial services company currently trades at $80.89, with a P/E ratio of 10.77x.

The firm cited Axos Financial’s above-peer growth and profitability metrics as key factors supporting the higher valuation target. This assessment aligns with InvestingPro data showing impressive 17.72% revenue growth and a "GREAT" overall financial health score. DA Davidson noted the company has demonstrated a proven ability to grow tangible book value and maintains strong capital positioning.

The research firm believes Axos is well-positioned to benefit from an improved economic outlook as market participants increasingly look past economic risks associated with trade policy. The current valuation stands at 9.5x DA Davidson’s revised fiscal 2026 earnings estimate of $8.04 per share.

DA Davidson also raised its earnings estimates for Axos Financial due to a change in California tax rules regarding multi-state income, which is expected to positively impact the company’s financial performance.

The price target increase represents continued confidence in Axos Financial’s business model and growth trajectory in the current financial environment.

In other recent news, Axos Financial has seen several significant developments. The company recently filed an 8-K detailing the tax impacts of California’s new budget, which is expected to lower Axos Financial’s effective tax rate by about 3%, potentially adding $0.30 to its annualized earnings per share. Needham responded by raising its price target for Axos Financial from $88.00 to $92.00, maintaining a Buy rating, citing the strengthened earnings power due to the tax benefits. Jefferies also initiated coverage with a Buy rating and set a price target of $90.00, highlighting Axos Financial’s strong loan growth and diversified deposit base.

Additionally, Axos Financial announced an increase of $100 million to its stock repurchase program, reflecting confidence in its stock value and commitment to shareholder returns. DA Davidson lowered its price target to $84.00 from $88.00 but maintained a Buy rating after Axos Financial outperformed expectations in its recent quarter, showing strong earnings per share and pre-provision net revenue per share. The company’s focus on maintaining an efficiency ratio below 50% and improving asset quality indicators were noted positively by the firm. Meanwhile, Needham reiterated its Buy rating and $88.00 price target, emphasizing Axos Financial’s position as a leader in digital banking and its growth potential through Axos Advisor Services.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.