This analyst just upgraded Versabank to “Buy”

Roth Capital Partners analyst Craig Irwin says VersaBank’s (VBNK Stock Quote, Chart, News, Analysts, Financials NASDAQ:VBNK) early commercial rollout of its Real-Time SRP program improves the bank’s growth outlook, prompting him to upgrade the stock.

In a June 30 update, Irwin upgraded VersaBank to “Buy” from “Neutral” and raised his target to US$25.00 from US$20.00

“We are upgrading shares of VersaBank to Buy as the team has been executing well for the past few quarters and now faces a more positive outlook on freshly implemented structural changes to funding,” Irwin said.

VersaBank announced the commercial launch of its internally developed, AI-enabled Real-Time SRP funding product ahead of its July 1 target, following a successful pilot with long-time Canadian partner Financeit.

Irwin said the product funds loans on a real-time, loan-by-loan basis, reducing customers’ need for warehouse financing and lowering the amount of equity partners need to commit to their SRP programs. He said it should also improve VersaBank’s risk mitigation because loans are closed in real time.

After the rollout, management expects stronger loan growth in 2026. Irwin said any U.S. demand above the Office of the Comptroller of the Currency’s $1-billion loan budget could sit on partner community bank balance sheets.

VersaBank has also filed its S-4 with the U.S. Securities and Exchange Commission as part of its planned restructuring into a U.S.-domiciled bank. Irwin said the move is expected to reduce annual expenses by about $8-million, improve investor familiarity through U.S. reporting and support capital access for growth.

He also sees VersaBank’s digital initiatives as an underappreciated long-term opportunity, including its Real Bank Tokenized Deposit and stablecoin technology. He said recent regulatory clarity on insured tokenized deposits removes a major hurdle to customer adoption.

Irwin left his estimates unchanged but raised his valuation multiple to 14 times from 11 times his fiscal 2027 adjusted EPS estimate of US$1.80, citing new product growth, the planned restructuring and digital opportunities.

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