In a report released today, Steve Moss from B.Riley FBR reiterated a Hold rating on Banc of California (NYSE: BANC), with a price target of $19. The company’s shares opened today at $19.75.
Moss noted:
“Banc of California’s (BANC) turnaround will continue to take time as it faces significant earnings headwinds from rising deposit costs and the remixing of its investment securities portfolio to loans, in our opinion. Accordingly, despite strong loan growth, our estimates are significantly below consensus due to our expectations for further NIM compression as a result of the challenging interest rate environment. We view CEO Doug Bowers’ initiatives to simplify the balance sheet, enhance its commercial relationships, and bolster core deposits as long-term positives that should enhance BANC’s franchise value. BANC is expensive on earnings at 18.5x our 2019 estimate, but more reasonably valued at 1.5x TBV. We remain on the sidelines and reiterate our Neutral rating and $19 price target as we await better earnings visibility from BANC’s turnaround plan.”
According to TipRanks.com, Moss is a 4-star analyst with an average return of 7.1% and a 60.7% success rate. Moss covers the Financial sector, focusing on stocks such as Seacoast Banking Corporation Of Florida, The Bank of Princeton, and Meta Financial Group.
Currently, the analyst consensus on Banc of California is a Moderate Buy with an average price target of $22.40.
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Banc of California’s market cap is currently $1.01B and has a P/E ratio of 35.28. The company has a Price to Book ratio of 1.40.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock.
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Banc of California, Inc. is a financial holding company, which engages in the provision of commercial banking services. It offers deposit and banking products and services, automated bill payment, cash and treasury management, master demand accounts, foreign exchange, interest rate swaps, card payment services, remote and mobile deposit capture, automated clearing house origination, wire transfer, direct deposit, and safe deposit boxes. The company was founded on March 25, 2002 and is headquartered in Santa Ana, CA.
