Keefe, Bruyette & Woods analysts raised Banc of California (NYSE:BANC) rating to Outperform from Market Perform and increased their price target to $18 from $16. The analysts pointed out that reducing non-interest and interest expenses is key to achieving an estimated 1.1% return on average assets (ROAA) and 13% return on tangible common equity (ROTCE) by Q4/24, emphasizing the strategy’s self-reliant nature.

Additionally, Banc of California has identified up to seven strategies to meet its profitability goals, showing flexibility in its approach. The analysts’ fourth-quarter earnings per share forecast of $0.45 leads to an annual rate of $1.80, indicating a 1.0% ROAA and a 12.4% ROTCE, slightly below the company’s own targets. The analysis suggests a potential upside of 29% against a downside risk of 13%, improving to a nearly 4:1 ratio in the most optimistic scenario, largely thanks to the bank’s internal improvements and less on broader economic factors.

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