Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

“Higher for longer” rate environment could benefit Axos Financial – Needham

admin by admin
January 9, 2025
in Stock
0
“Higher for longer” rate environment could benefit Axos Financial – Needham
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter

Investing.com – The possibility of interest rate remaining higher than anticipated for a longer period of time could be “ideal” for Axos Financial (NYSE:AX), analysts at Needham have said.

In a note to clients placing the digital bank on their “conviction list” and naming it a “top pick” for 2025, the Needham analysts led by Kyle Peterson said that recent comments from Federal Reserve officials suggesting they will carefully approach further rate cuts could be beneficial for the company.

“[We] believe there could be upside to growth and margins if loan prepayment speeds slow and a steeper yield curve helps unit economics on loans priced on intermediate/long-term benchmarks,” the analysts wrote.

They added that they expect shares in Axos to outperform their coverage over the next 12 months, and reiterated their “buy” rating and $85 price target for the stock.

“[T]his could be an ideal interest rate environment for Axos,” the analysts argued, saying that the possibility of looser regulations and increased domestic investment during the upcoming administration of Donald Trump could also boost the business.

Minutes from the Fed’s December meeting released on Wednesday showed that staff at the central bank were uncertain about the impact of Trump’s plans for sweeping import tariffs and mass deportations on inflation.

Fed officials were particularly worried that a recent cooling in price gains may be affected by Trump’s policy changes, flagging that the process of inflation easing down to the central bank’s eventual target of 2% “could take longer than previously anticipated.”

These fears, coupled with the rate-setting Federal Open Market Committee already having slashed interest rates by a full percentage point in 2024, persuaded some members to opt for a “careful” approach to further reductions this year, the minutes said.

Following the release, bets that the Fed would choose to leave borrowing costs unchanged at its next couple of upcoming meetings were bolstered, with the first drawdown now not forecast until May at the earliest.

This post appeared first on investing.com

Previous Post

Saudi Arabia stocks higher at close of trade; Tadawul All Share up 0.07%

Next Post

Mexico inflation drops to 4.21%, approaching four-year record low

admin

admin

Next Post
Mexico inflation drops to 4.21%, approaching four-year record low

Mexico inflation drops to 4.21%, approaching four-year record low

Trending News

Palo Alto initial negative stock reaction ‘overblown’ Wedbush says

Palo Alto initial negative stock reaction ‘overblown’ Wedbush says

November 21, 2024
US stocks rebound on Mon: Dow Jones up 0.6%, Nasdaq jumps 1%

US stocks rebound on Mon: Dow Jones up 0.6%, Nasdaq jumps 1%

June 16, 2025
Walmart amends DEI policy: why it matters, and why are companies becoming less ‘woke’?

Walmart amends DEI policy: why it matters, and why are companies becoming less ‘woke’?

November 26, 2024
Subscribe to Insightful Word


    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025
    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    August 28, 2025
    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    August 28, 2025

    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025

    Latest News

    • Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in
    • SentinelOne stock price forecast ahead of earnings: buy or sell?
    • Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.