DA Davidson has increased its price target for BayCom (NASDAQ: BCML) to $34.00, up from $32.00, while preserving a Buy rating on the stock. The new target is said to broadly align with the stock's undervaluation as indicated by InvestingPro Fair Value metrics.
The research note highlights BayCom's solid pre-provision net revenue (PPNR) performance as a key factor behind the upward revision. Earnings per share were affected in the most recent quarter by a negative quarter-over-quarter swing tied to the firm's preferred equity investments. DA Davidson nonetheless emphasized that the PPNR result underlines underlying operational strength.
BayCom currently trades at a price-to-earnings ratio of 13.75 and a PEG ratio of 3.47, metrics the firm considered in its assessment. DA Davidson analyst Gary Tenner said that normalizing for the impact of the preferred equity investment shows stronger core revenue growth and an expanding net interest margin (NIM), supporting a higher forward earnings outlook.
Looking ahead, DA Davidson projects BayCom's earnings per share to rise 22% in 2026. The firm also expects PPNR per share growth of 21.5% for the same year. Those forecasts underpinned the decision to keep the Buy rating while nudging the price objective higher to reflect improving fundamentals.
In a separate corporate action, BayCom Corp - the parent company of United Business Bank - announced an increase in its quarterly cash dividend. The board declared a dividend of $0.30 per share, a 20% lift from the prior $0.25 per share. The dividend will be payable on January 9, 2026, to shareholders of record as of December 11, 2025. Management framed the move as a continuation of returning value to shareholders.
The combination of stronger PPNR results, expectations for higher future earnings, and an enlarged dividend informed DA Davidson's view that BayCom's financial metrics are on an improving trajectory. The analyst team's adjustment captures those trends while recognizing the quarter-over-quarter volatility introduced by preferred equity investment accounting.
Summary
DA Davidson raised its BayCom price target to $34 from $32 and upheld a Buy rating, citing solid pre-provision net revenue and normalized improvements in core revenue and net interest margin. The firm forecasts 22% EPS growth and 21.5% PPNR per-share growth in 2026. BayCom's board approved a 20% increase in the quarterly cash dividend to $0.30 per share.