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Investing.com - DA Davidson raised its price target on Community West Bancshares (NASDAQ:CWBC) to $25.00 from $24.00 on Monday, while maintaining a Buy rating on the stock. According to InvestingPro analysis, the stock appears undervalued, trading at an attractive P/E ratio of 11.3x, with the company maintaining dividend payments for 14 consecutive years.
The research firm cited the bank’s sequentially higher top-line revenue, which was driven by solid core net interest margin expansion, high single-digit loan growth, and continued pristine asset quality. The bank’s financial health score is rated as GOOD by InvestingPro, with particularly strong marks in relative value and growth metrics.
DA Davidson noted positive loan and net interest income momentum is projected for the fourth quarter and into 2026 for the financial institution.
The firm raised its earnings per share estimates for Community West Bancshares from $1.93 to $2.00 for 2025, and from $2.24 to $2.35 for 2026.
The new $25 price target represents a 10.5x multiple on the bank’s estimated 2026 earnings per share, with the higher 2026 estimate primarily driven by increased net interest income projections, supported by steady loan growth and higher net interest margin forecasts.
In other recent news, Community West Bancshares reported a notable increase in its third-quarter net income, reaching $10.87 million. This represents a substantial rise from the $3.39 million reported in the same period last year. The company’s diluted earnings per share for the quarter were $0.57, compared to $0.18 per diluted share in the third quarter of 2024. Additionally, DA Davidson raised its price target for Community West Bancshares to $24.00, up from $20.00, while maintaining a Buy rating. The firm highlighted the bank’s stable top-line revenue and solid net interest margin expansion as reasons for the revised price target. In the second quarter, Community West Bancshares reported earnings per share of $0.41, which was below both DA Davidson’s estimate and the Street mean of $0.48. These developments reflect recent financial and analyst activity surrounding Community West Bancshares.
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