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Investing.com - Needham has raised its price target on Axos Financial (NYSE:AX) to $102.00 from $92.00 while maintaining a Buy rating on the stock. The stock, currently trading near its 52-week high of $88.46, has delivered impressive returns with a 22.1% gain year-to-date.
The price target increase follows Axos Financial’s strong fiscal year 2025 performance, which exceeded Wall Street expectations for both revenue and earnings. The company’s outperformance was attributed to higher net interest margin and stronger fee income. According to InvestingPro data, Axos has maintained robust revenue growth of 17.72% and earned a "GREAT" Financial Health Score of 3.3.
Needham highlighted encouraging updates on Axos Financial’s loan pipeline, noting that management believes the company is well-positioned to organically grow loans toward the high end of its targeted growth range of high single digits to low teens.
The research firm also pointed to Axos Financial’s continuing capital accumulation, which Needham expects will be allocated to a combination of bolt-on acquisitions, team lift-outs, and share repurchases to further enhance earnings per share growth.
With shares trading at a fiscal year 2027 price-to-earnings multiple of 9.7x, Needham views the risk-reward profile as favorable for investors seeking exposure to digital lending and banking sectors.
In other recent news, Axos Financial Inc. reported better-than-expected earnings for the fourth quarter of fiscal year 2025. The company achieved an earnings per share (EPS) of $1.94, exceeding analysts’ projections of $1.78. Axos Financial’s revenue figures were also robust, contributing to a favorable market reception. These results underscore the company’s strong performance and effective strategic initiatives. Despite these positive earnings, the stock experienced a slight decline in after-hours trading. However, the focus remains on the company’s financial achievements. Analysts have noted these developments, but no upgrades or downgrades were mentioned in the reports. This performance highlights Axos Financial’s ability to surpass market expectations. These recent developments reflect the company’s ongoing financial strength.
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