DA Davidson raised its price target on Sierra Bancorp (NASDAQ: BSRR) to $44.00 from $39.00 on Tuesday, while keeping a Buy rating on the shares. The updated target implies upside relative to the prevailing market price of $38.46, which sits close to the company's 52-week high following a strong 32% gain over the past six months.
The brokerage attributed the target increase to what it described as a "solid overall quarter," noting that earnings per share benefited from a smaller-than-expected negative provision for loan losses. That reserve outcome helped lift reported profitability for the period.
Market data referenced in the analyst write-up shows that five analysts have revised their earnings estimates higher for the upcoming period, while Sierra Bancorp trades at a price-to-earnings ratio of 36.5.
DA Davidson also pointed to an improved outlook for loan growth in 2026. The bank is now projecting mid-single digit loan growth for the year, a notable step up compared with the prior two years when loan growth expectations were weaker. Management's guidance on loan balances was highlighted as a factor supporting the more constructive valuation view.
Another element cited in the report was Sierra Bancorp's renewed focus on commercial deposit growth. The analyst said management's emphasis on expanding commercial deposits should underpin balance sheet growth and support net interest margin going forward.
Sierra Bancorp is the parent company of Bank of the Sierra, which operates branches throughout California's San Joaquin Valley and surrounding communities. The regional footprint remains central to the bank's deposit and lending franchise.
In related corporate developments, Sierra Bancorp said it will increase its regular quarterly cash dividend by 4%, lifting the payout to $0.26 per share. That dividend is scheduled to be paid on February 17, 2026, to shareholders of record as of February 9, 2026.
The company also announced an executive transition within its accounting function. Cindy Dabney, Senior Vice President and Chief Accounting Officer, will retire and resign as Principal Accounting Officer effective January 5, 2026. The company has named Christopher Treece, Executive Vice President and Chief Financial Officer, to assume the role of Principal Accounting Officer upon her departure. Mr. Treece has held his current executive roles since January 2020 and will not receive any change in compensation as a result of this appointment.
These operational and governance developments were disclosed through company press releases and filings with the Securities and Exchange Commission. Together with the quarter's reserve and earnings dynamics, DA Davidson's note indicates the brokerage sees a clearer path to modest balance-sheet expansion and improved margin performance into 2026.
Implications
- Analyst action - A higher price target and maintained Buy rating signal confidence in earnings momentum driven by reserve improvements.
- Balance sheet dynamics - Projected mid-single digit loan growth and a push for commercial deposits point to potential expansion in lending and deposit funding.
- Corporate governance - A planned accounting leadership change and an unchanged compensation structure for the CFO-turned-Principal Accounting Officer were disclosed alongside a modest dividend increase.