Banc of California Inc. (NYSE:BANC) is one of the 10 most undervalued bank stocks to buy now.
On April 7, Barclays reduced the price target on Banc of California Inc. (NYSE:BANC) from $25 to $23 while reiterating an Overweight rating. Despite the downward price target adjustment, the stock still offers almost 25% upside potential to investors, which supports its bullish investment case.
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What essentially drove this valuation adjustment was the broader strategic realignment as part of the first quarter overview. According to Barclays, the overall trends in loan growth and net interest revenue appear to be rather favorable at the moment. Concurrently, the firm states that massive corporate layoffs, rapid disruption from artificial intelligence, and shifting energy prices are all contributing to serious uncertainty.
Despite these underlying uncertainties, Banc of California Inc. (NYSE:BANC) still offers more than 21% upside potential, as per consensus. This makes it one of the distinct names across the broader banking segment during these uncertain times.
Adding to the bullish views is the bank’s capital return strategy for shareholders, which should be another reason for investors to keep a close watch on this undervalued banking stock. On March 23, the Board of Directors of Banc of California Inc. (NASDAQ:BANC) approved an extension of the ongoing stock repurchase plan until March 2027, although it was supposed to expire in March 2026.
Banc of California has repurchased around $217 million worth of its common stock under the stock repurchase program since it was initiated, having repurchased $31 million worth of its common stock during 2026.
Banc of California Inc. (NYSE:BANC) provides treasury and banking management solutions to entrepreneurs, high-net worth individuals, middle-market businesses, non-profit organizations, and more. Its portfolio of services includes mortgages, electronic payment solutions, wire transfers, equipment finance, and treasury management. Other solutions include forex, interest rate swaps, money market accounts, certificates of deposit, and more.
While we acknowledge the risk and potential of BANC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BANC and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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