2023-06-21 14:50:34 ET
D.A. Davidson analyst Gary Tenner earlier this week started coverage of California-based regional lenders California Bancorp ( NASDAQ: CALB ), Southern California Bancorp ( NASDAQ: BCAL ) and Private Bancorp of America ( OTCQX:PBAM ) with Buy ratings.
CALB, +1.6% , BCAL, +1.7% , and PBAM, +0.2% , all gained in mid-afternoon trading, even as the broader stock-market rally continued to cool.
For California Bancorp ( CALB ), in particular, Tenner praised its cash and treasury management efforts, which "should, in our view, support the company's ability to continue to execute on its deposit strategy," he wrote in a Tuesday note.
Net interest margin compression, though is expected to weigh on its overall growth over the short-term.
Southern California Bancorp ( BCAL ), meantime, "is well-positioned to execute on its investments" over the past two years, "despite a more uncertain near term outlook given economic risks and higher interest rates," he said in a separate note.
The Buy-rated initiation comes about one week after BCAL said it will buy back up to 550K shares , or around 3%, of its common stock.
And, for Private Bancorp of America ( OTCQX:PBAM ), Tenner contended in another note that its compounded annual growth rate "will be stronger than our overall coverage universe, which has a current median growth estimate of 5.5% for the year, with PBAM remaining disciplined on underwriting, pricing, and product given the uncertainties around the economy, and asset values, particularly in the real estate segment."
SA's Peer tab compared various metrics of CALB, PBAM and BCAL against one another.
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CALB, BCAL, PBAM get Buy ratings in new coverage at D.A. Davidson