This article first appeared on GuruFocus .

Axos Financial ( NYSE:AX ), the digital bank that runs branchless consumer and commercial lending, rose 1.67% intraday after Benchmark raised its price target to $120 from $115 and kept a Buy rating. The increase reflects a higher multiple, with Benchmark now applying 12.8x its 2027 earnings per share estimate, up from 12.2x.

Benchmark said its thesis is intact and that a review of recent bank earnings turned up only a handful of lenders delivering the same combination of loan growth, profitability and tangible book value accretion. It points to Axos's willingness to chase niche lending verticals and make acquisitions as the reason growth keeps running above peers.

Axos posted fiscal fourth-quarter diluted earnings of $2.53 per share against $2.16 expected, on revenue of $379.77 million versus $376.59 million, helped by loan growth, a wider net interest margin and lower credit costs. Needham went to $128 from $110 after those results, while Keefe, Bruyette & Woods moved to $110 from $105, citing fee momentum and stable credit.