On Wednesday, California BanCorp (NASDAQ:CALB) shares saw its price target reduced from $36.00 to $31.00, though it retained its Buy rating from the investment firm DA Davidson.
The adjustment reflects the bank's continued emphasis on growing its core deposits and fostering new commercial relationships. Despite this focus, loan growth has been described as modest, attributed to ongoing payoff activities.
The financial institution is also in the process of merging with BCAL, which is expected to be completed in the third quarter of 2024. According to the investment firm, significant preparatory work for the merger has already been undertaken by both California BanCorp and BCAL, indicating that the process is proceeding smoothly.
The Buy rating suggests that the firm remains optimistic about California BanCorp's stock performance despite the lowered price target. The revised target of $31.00 takes into account the current dynamics of the bank's operations, including its loan growth and merger activities.
California BanCorp's strategic actions, including its merger with BCAL, are part of its broader efforts to strengthen its market position and financial stability. The company's focus on core deposit growth and commercial relationship development is central to its business model.
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