Needham names Axos top pick for 2025, adds to Conviction List

Needham highlighted Axos Financial (AX) as a top pick for 2025 and added the stock to the firm’s Conviction List. Axos is well positioned to thrive in a “higher for longer” interest rate environment, and 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 or long-term benchmarks, the analyst tells investors in a research note. Further, Needham believes Axos could be a fundamental beneficiary of the upcoming administration change. It expects the shares to outperform over the next 12 months and reiterates a Buy rating on the name with an $85 price target