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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.
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