PacWest Bancorp (NASDAQ:PACW)‘s stock had its “buy” rating reaffirmed by analysts at Stephens in a report issued on Tuesday, AnalystRatings.com reports. They presently have a $43.00 price objective on the financial services provider’s stock. Stephens’ price objective would suggest a potential upside of 15.81% from the stock’s previous close.
The analysts wrote, “We believe investor expectations were low for PACW’s 2Q results given fears around muted loan growth and continued NIM pressures. While mixed, we thought the in-line results ($0.94) were overall OK. Although lower q/q, 3.5% LQA loan growth was slightly better than Street’s expectations; and we view the NIM to be a push, as (ex. elevated prepay fees) the core loan-deposit spread came in 1 bps better than we anticipated which, coupled with lower liquidity due to elevated securities sales ($980 mil.), drove a 3 bps core NIM beat but ultimately a $4.3 mil. core FTE NII miss. Credit results were fine, including elevated NCOs but lower NPLs and special mention loans. We have an Overweight rating given the above peer profitability profile (1.72% ROA in 2Q) and discounted valuation of 9.8x our 2020 EPS.””
Several other brokerages have also recently commented on PACW. Wells Fargo & Co reiterated a “buy” rating on shares of Morgan Stanley in a report on Wednesday, April 17th. BidaskClub cut Zynerba Pharmaceuticals from a “buy” rating to a “hold” rating in a report on Thursday, July 11th. Zacks Investment Research cut EXACT Sciences from a “hold” rating to a “sell” rating in a report on Tuesday, July 2nd. Raymond James cut First Midwest Bancorp to a “hold” rating in a report on Monday, July 8th. Finally, ValuEngine upgraded Vale from a “sell” rating to a “hold” rating in a report on Tuesday. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and three have assigned a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average price target of $44.67.
PacWest Bancorp (NASDAQ:PACW) last announced its earnings results on Tuesday, July 16th. The financial services provider reported $1.07 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.94 by $0.13. PacWest Bancorp had a return on equity of 9.83% and a net margin of 34.54%. The business had revenue of $311.79 million for the quarter, compared to analysts’ expectations of $291.71 million. During the same period in the prior year, the business posted $0.92 earnings per share. Sell-side analysts predict that PacWest Bancorp will post 3.81 earnings per share for the current year.
Institutional investors and hedge funds have recently modified their holdings of the stock. First Hawaiian Bank lifted its holdings in shares of PacWest Bancorp by 128.5% in the 1st quarter. First Hawaiian Bank now owns 786 shares of the financial services provider’s stock worth $30,000 after purchasing an additional 442 shares in the last quarter. Parallel Advisors LLC raised its position in PacWest Bancorp by 57.0% in the 1st quarter. Parallel Advisors LLC now owns 879 shares of the financial services provider’s stock valued at $33,000 after buying an additional 319 shares during the last quarter. Avestar Capital LLC purchased a new stake in PacWest Bancorp in the 1st quarter valued at $39,000. Icon Wealth Partners LLC purchased a new stake in PacWest Bancorp in the 1st quarter valued at $58,000. Finally, First Interstate Bank raised its position in PacWest Bancorp by 26.5% in the 1st quarter. First Interstate Bank now owns 4,015 shares of the financial services provider’s stock valued at $151,000 after buying an additional 840 shares during the last quarter. Institutional investors own 89.52% of the company’s stock.
PacWest Bancorp Company Profile
PacWest Bancorp operates as the holding company for Pacific Western Bank, a state chartered bank that provides commercial banking products and services. The company accepts demand, money market, and time deposits. It also provides real estate loans to professional developers and real estate investors for the acquisition, refinancing, and construction of commercial real estate properties; small business administration loans; asset-based loans for working capital needs; venture capital loans to support the start-up operations of entrepreneurial companies; and equipment-secured loans and leases.
See Also: Gross Domestic Product (GDP)
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