Axos Financial jumps after announcement of lower tax burden

Axos Financial

02/07/2025 18:19

** Shares of U.S. lender Axos Financial AX.N jump about 5.3% to $82.5

** After market close on Tuesday, Axos announced that new tax rules are expected to lower its effective tax rate by about 3%, following changes in California state budget law

** Needham analyst says the California budget bill shifts financial institutions to a single-factor model based on revenue, replacing the previous multi-factor model that considered property, payroll and revenue

** Brokerage expects that the reduction in AX tax burden will add 30 cents to its annualized EPS

** Five of six brokerages rate the stock "buy" or higher, one rates "hold"; their median PT is $87.50, according to data compiled by LSEG

** Including session's moves, stock up about 17.8% YTD

(Reporting by Prakhar Srivastava in Bengaluru)

((Prakhar.srivastava2@thomsonreuters.com))