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Investing.com - DA Davidson has reiterated its Buy rating and $19.00 price target on Southern California Bancorp (NASDAQ:BCAL), maintaining its positive outlook on the regional bank. Currently trading at $15.59, InvestingPro analysis suggests the stock is slightly overvalued against its Fair Value.
The bank’s ongoing loan portfolio derisking efforts contributed positively to its quarterly performance, with the company reporting its second consecutive negative provision. This helped Southern California Bancorp match DA Davidson’s earnings estimate of $0.43 per share.
The financial institution also exceeded the Street’s earnings expectations for the quarter, although its pre-provision net revenue per share came in $0.02 below DA Davidson’s estimate.
DA Davidson anticipates Southern California Bancorp will resume loan growth beginning in the third quarter of 2025, according to its analysis of the bank’s financial position and market conditions.
The research firm further projects that deposit growth for Southern California Bancorp will begin in the fourth quarter of 2025, suggesting a positive trajectory for the bank’s core business metrics in the coming months.
In other recent news, Southern California Bancorp reported its second-quarter operating earnings per share at $0.41, meeting analysts’ expectations and surpassing Stephens’ forecast by $0.02. The bank has been actively repositioning its balance sheet following its merger with CALB, resulting in a reduction of sponsor loans to 1.4% of total loans and brokered deposits to 0.1% of total deposits, a significant decrease from the 6% reported in the third quarter of 2024. Stephens has adjusted its price target for Southern California Bancorp, raising it to $19.00 from a previous $18.00, while maintaining an Equal Weight rating on the stock. These developments reflect the company’s ongoing efforts to stabilize and optimize its financial structure post-merger.
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