AX Stock Forecast & Price Target

Axos Financial is well-positioned in the banking industry as it utilizes online and telephonic distribution channels to distribute its products, allowing for lower costs and increased flexibility. The recent acquisition of Jenius Bank's consumer deposits will further enhance AX's deposit funding and help offset potential pressure on net interest margin in a falling interest rate environment. AX's strong loan growth, low loan losses, and disciplined approach to expense management make it an attractive investment opportunity with a potential for long-term growth.

Axos Financial is diversifying their business model by acquiring Jenius Bank's deposits from SMBC, but increased scrutiny due to their regulated status could lead to slower growth and increased expenses. However, their strong financials and digital first strategy make them well-positioned to capitalize on growth opportunities. Their balance sheet lending poses an interest rate risk that could negatively impact their profitability and regulatory capital ratios, but we maintain a buy rating with a price target of $112 based on a 12.5x P/E multiple on their estimated 2026 earnings per share of $8.95.