Analyst David Chiaverini of Wedbush maintained a Hold rating on Pacific Premier Bancorp (PPBI – Research Report), with a price target of $30.00.
Geoff Meacham has given his Hold rating due to a combination of factors affecting Pacific Premier Bancorp’s recent financial performance and future prospects. The bank’s latest quarterly results were a mixed bag, with notable expansion in net interest margin (NIM) but also significant outflows in noninterest-bearing deposits. Although Pacific Premier managed to exceed revenue projections and reduce higher-cost funding sources, the sale of assets led to a financial loss and unexpected declines in average earnings assets. These developments, coupled with moderate improvements in credit metrics, present a nuanced picture of the bank’s current financial health.
The guidance provided by the bank aligns with expectations, projecting a cautious outlook on loan demand and a strategic focus on securing high-quality banking relationships. Pacific Premier’s efforts in optimizing its balance sheet, including the reduction of wholesale deposits and FHLB advances, indicate a proactive approach to mitigating funding pressures. Despite these measures, the anticipated deceleration in deposit pricing pressure and the expectation for NIM stabilization suggest a tempered growth outlook. Consequently, the Hold rating reflects the belief that Pacific Premier’s valuation is fair when considering its growth potential relative to industry peers.
Chiaverini covers the Financial sector, focusing on stocks such as NY Community, HomeStreet, and SoFi Technologies. According to TipRanks, Chiaverini has an average return of -6.1% and a 41.61% success rate on recommended stocks.
In another report released yesterday, KBW also maintained a Hold rating on the stock with a $29.00 price target.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Pacific Premier Bancorp (PPBI) Company Description:
Pacific Premier Bancorp, Inc. operates as a bank holding company, which engages in the provision of banking services through its subsidiary, Pacific Premier Bank. It offers deposit products and services for business and consumer customers, including checking, money market and savings accounts, cash management services, electronic banking, and on-line bill payment. The company was founded in 1997 and is headquartered in Irvine, CA.
Read More on PPBI:
