Investing.com – D.A. Davidson reiterated a Buy rating and $14.50 price target on , representing a 26% upside from the current stock price of $11.53. The $1.47 billion market cap bank currently trades above its InvestingPro Fair Value, appearing on the platform’s Most Overvalued list.
The firm noted Hope Bancorp’s announced acquisition of SMBC MANUBANK’s commercial banking unit deepens the company’s presence in the Los Angeles market. The transaction provides access to a lower cost core deposit base.
The deal leverages excess capital to support an outlook for an improved return profile immediately after the transaction closes. Hope Bancorp will enter a partnership agreement with SMBC.
The partnership could provide an additional pipeline of deposit and loan opportunities to the company over time. D.A. Davidson analyst Gary Tenner maintained the Buy rating and $14.50 price target.
The acquisition expands Hope Bancorp’s commercial banking operations in its core Southern California market. The transaction terms were not disclosed in the analyst commentary.
In other recent news, Hope Bancorp reported its fourth-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share of $0.27, exceeding the forecast of $0.25, and reported revenue of $145.76 million, outperforming the projected $142.9 million. Additionally, Hope Bancorp announced a definitive agreement for its subsidiary, Bank of Hope, to acquire the Commercial Banking Unit of SMBC MANUBANK, adding approximately $2.5 billion in loans and $2.7 billion in deposits. This acquisition includes eight branches in Southern California, focusing on the Los Angeles metropolitan area.
The board of directors also promoted Peter J. Koh to president and chief operating officer of Bank of Hope, while Kevin S. Kim will remain chairman and CEO. Furthermore, directors David P. Malone and Lisa K. Pai have announced their intention to retire following the company’s 2026 Annual Meeting of Stockholders. Both directors will continue to serve in their current roles until the end of their terms.
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Source:
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