Buy Rating for Banc of California: EPS Growth, Scarcity Value, and Strategic Positioning Drive Positive Outlook

Tip Ranks
2025.11.11 11:45
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Wells Fargo analyst Timur Braziler has reiterated a Buy rating on Banc of California, setting a price target of $20.00. The positive outlook is driven by expected EPS growth, scarcity value, and the bank's strategic positioning. Despite a temporary slowdown anticipated in late 2025, growth momentum is expected to pick up through 2027. The bank's improving credit quality and solid capital position support potential buybacks, while Citi also upgraded the stock to a Buy with a $21.50 price target.

Wells Fargo analyst Timur Braziler reiterated a Buy rating on Banc of California yesterday and set a price target of $20.00.

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Timur Braziler has given his Buy rating due to a combination of factors including the anticipated earnings per share (EPS) growth and the scarcity value of Banc of California. The bank has reached a significant milestone with its first clean quarter post-PACW, which enhances clarity on its EPS trajectory. Although there is a temporary slowdown expected in the fourth quarter and the first quarter of 2026, the momentum is projected to accelerate through 2027, supported by rate cuts and stronger balance sheet growth.
Braziler also highlights the bank’s valuation potential, which is expected to improve alongside its fundamentals, and the bank’s strategic position in the current mergers and acquisitions environment. The anticipated positive operating leverage, driven by net interest income growth, higher fees, and strong cost control, further supports the Buy rating. Additionally, the bank’s credit quality is improving, with a decline in criticized loans, and its capital position remains solid, allowing for potential buybacks, although capital constraints may limit their magnitude.

In another report released on October 28, Citi also upgraded the stock to a Buy with a $21.50 price target.