Private Bancorp Shares Surge 51.6% on Growth
Private Bancorp of America shares have climbed 51.6% over the past year, alongside a 45.6% return year-to-date. That momentum prompted DA Davidson to raise its price target on the stock to $107.00 from $105.00 while maintaining a buy rating, Investing.com reported.
The adjustment follows the bank’s return to double-digit loan growth in the third quarter alongside a 5.00% adjusted net interest margin.
Core Operations Outpace Published Figures
DA Davidson pointed to core operational results that outpace published figures when factoring in expenses tied to the NASDAQ listing, real estate owned (OREO) costs, severance packages, and elevated loan-loss provisions under the newly adopted CECL model. The firm considers Private Bancorp of America one of the top growth and profitability stories among small banks in the sector.
According to InvestingPro data cited in the reporting, the stock trades at a price-to-earnings ratio of 10.54. That positions it as an attractive option relative to its near-term earnings growth potential.
Valuation Metrics Meet Optimistic Forecasts
At the same time, InvestingPro analysis indicates the equity is currently trading above its calculated Fair Value, prompting a closer look at valuation metrics against analysts’ optimistic outlooks. Investors can also consult 6 additional ProTips and comprehensive financial health scores for further insights.
The firm previously adjusted its target to $96.00 and $105.00 across recent quarters, citing the company’s dynamic position in the community banking sector despite a temporary growth slowdown, as well as the second-quarter net interest margin expansion.
Piper Sandler Adjusts Sector Estimates
Parallel moves in the sector include Piper Sandler raising its price target on the company to $96.00 with an overweight rating.
The firm also adjusted per-share earnings estimates for 2026 and 2027 to $8.60 and $8.75 respectively. Those revisions account for higher adjusted earning assets and lower loan-loss provisions, offset in part by smaller gains on Small Business Administration loan sales.
