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Axos Financial sees positive outlook with potential 57% surge

EditorAmbhini Aishwarya
Published 31/10/2023, 05:44
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
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On Monday, Raymond James maintained an Outperform rating for Axos Financial (NYSE:AX), forecasting a potential 57.07% surge from its last closing price of $34.85, with a one-year price target averaging at $54.74.

The firm's bullish outlook on Axos is supported by the bank's projected annual revenue of $957 million, indicating a 4.15% increase. The non-GAAP EPS is estimated at 5.18.

Institutional sentiment towards Axos has grown, with holdings by 596 funds or institutions marking a 5.67% rise from the previous quarter. Institutional ownership expanded by 3.02% to reach 55,821K shares in the last three months.

However, the put/call ratio of 2.48 suggests a bearish sentiment among traders. Despite this, shareholders have adjusted their allocations in Axos, with Davis Asset Management notably increasing its allocation by 18.30%.

Axos Financial, which holds approximately $14.4 billion in assets, offers consumer and business banking products through low-cost distribution channels and affinity partners. Its subsidiaries, Axos Clearing LLC and Axos Invest, Inc., provide securities clearing services to introducing broker-dealers and registered investment advisor correspondents.

The bank also engages in unusual options trades powered by advanced, backtested quantitative models for improved profits. Its common stock is listed on the NYSE under 'AX' and is a component of several indexes including the Russell 2000® Index, KBW Nasdaq Financial Technology Index, and the S&P SmallCap 600® Index.

InvestingPro Insights

According to real-time data from InvestingPro, Axos Financial (NYSE:AX) has a market cap of $4790 million and a P/E ratio of 14.09, indicating a relatively low valuation in the current market. The revenue for the last twelve months as of Q2 2023 is $5403.52 million, showing a growth of 4.1% which aligns with the bank's projected annual revenue increase mentioned in the article.

Two key InvestingPro Tips for Axos are worth noting. Firstly, the company has high earnings quality, with free cash flow exceeding net income. This suggests a strong financial position. Secondly, Axos has a solid history of maintaining and raising its dividend, having done so for 21 consecutive years. This is a positive sign for investors seeking steady income.

For more detailed insights and tips, consider subscribing to InvestingPro. With over 8 additional tips and countless real-time metrics, InvestingPro offers a comprehensive overview of companies like Axos Financial.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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