Bank of Marin Bancorp (NASDAQ:BMRC) shares surged more than 4% intra-day today after Daishin Securities analysts upgraded the company from Market Perform to Buy, raising the price target from $21 to $24. The upgrade reflects an improved earnings outlook for BMRC, largely due to expectations of a Fed shift toward lower rates, which should enhance net interest margin (NIM) and net interest income (NII).

The analysts increased BMRC’s 2025 EPS estimate by 10% and noted that lower interest rates could alleviate some pressures on office commercial real estate (CRE), thereby reducing concerns around credit quality. Shares of BMRC are currently trading at a roughly 30% discount to their peers and about half the bank’s long-term price-to-tangible book value (P/TBV) multiple, making it a compelling opportunity according to the analysts.