Hope Bancorp upgraded to Buy from Neutral at DA Davidson

DA Davidson analyst Gary Tenner upgraded Hope Bancorp (HOPE) to Buy from Neutral with a $12.50 price target following its announced merger with Territorial Bancorp (TBNK). The transaction is expected to be double-digit EPS accretive in 2025, with limited credit risk and a long tail of discount accretion benefit, says the analyst. While deal risk exists via the expansion into a historically challenging market for mainland banks and Hope is purchasing a bank that has not been a significant grower in recent years, that risk, along with core earnings headwinds, appear to be priced in following Monday’s 9% selloff, the analyst tells investors.