Banc of California: Hold Rating Affirmed Amidst Earnings Restatement and Revised Projections

David Chiaverini, an analyst from Wedbush, maintained the Hold rating on Banc of California (BANC – Research Report). The associated price target remains the same with $15.00.

David Chiaverini has given his Hold rating due to a combination of factors concerning the Banc of California’s financial revisions and future income projections. Following the restatement of their first-quarter earnings, Banc of California identified a data mishap that affected their loan systems, leading to a corrected lower net loan discount accretion income. The net interest margin and earnings per share (EPS) figures were also adjusted downward. This restatement suggests potential concerns about the bank’s internal controls and forecasting reliability, hence influencing the Hold rating.

Furthermore, Chiaverini’s assessment takes into account the lowered core earnings per share (EPS) estimates for 2024 and 2025, based on the anticipation of reduced net interest income. Despite these adjustments, the Hold rating signifies that the analyst believes the current market valuation of the Banc of California fairly reflects its revised outlook and future earning potentials. This neutral stance indicates that the bank’s stock is considered neither undervalued nor overvalued, hence advising investors to maintain their positions without further buying or selling actions at this time.

According to TipRanks, Chiaverini is an analyst with an average return of -3.1% and a 44.74% success rate. Chiaverini covers the Financial sector, focusing on stocks such as NY Community, Banc of California, and Western Alliance.

In another report released on May 7, Wells Fargo also maintained a Hold rating on the stock with a $16.00 price target.

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Banc of California (BANC) Company Description:

Banc of California, Inc. is a financial holding company, which engages in the provision of commercial banking services. It offers personal banking, business and commercial banking, real estate banking, and private banking. The company was founded in March 2002 and is headquartered in Santa Ana, CA.