RBC Capital Raises Texas Capital Bancshares Price Target to $100

RBC Capital has raised its price target for Texas Capital Bancshares (TCBI) to $100, while maintaining a Sector Perform rating. The company experienced strong growth in loans, margin expansion, and fee activity in the latest quarter, contributing to its solid financial results. Analysts forecast an average target price of $86.25 with a high estimate of $102.00 and a low estimate of $69.00.

Title: RBC Capital Raises Price Target for Texas Capital Bancshares (TCBI)

RBC Capital has recently increased its price target for Texas Capital Bancshares (TCBI) to $100, maintaining a Sector Perform rating. The move comes on the heels of the company's robust performance in the latest quarter, which saw strong growth in loans, margin expansion, and fee activity. The solid financial results have been recognized by analysts, who forecast an average target price of $86.25, with a high estimate of $102.00 and a low estimate of $69.00 [1].

Texas Capital Bancshares reported a 9% year-over-year revenue growth, with a 21% increase in adjusted pre-provision net revenue. The company achieved a record high in intangible book value per share, growing by 11%. Noninterest-bearing deposits, excluding mortgage finance, grew 7% in the quarter, marking the largest quarterly increase since 2021. Treasury product fees increased by 22% year-over-year, reaching a record high for the firm. The firm maintained strong capital levels with a tangible common equity to tangible assets ratio of 10% [2].

However, the company also faced some challenges. Total noninterest expense increased by $30.9 million quarter over quarter, driven by seasonal payroll and compensation expenses. Linked quarter total revenue declined by $3.2 million or 1%, due to a decline in fee revenue amid capital markets uncertainty. Provision expense of $17 million was recorded due to growth in loans held for investment and net charge-offs against problem credits. The firm remains cautious on the mortgage outlook for the remainder of 2025 due to ongoing rate volatility. Investment banking fees have been delayed due to economic uncertainty, impacting the fee income outlook [2].

Despite these challenges, the positive performance in the latest quarter has led RBC Capital to raise its price target. The company's strong financial results and strategic execution have positioned it favorably in the market. Investors should continue to monitor the company's performance and adjust their investment strategies accordingly.

References
[1] https://www.gurufocus.com/news/2987157/rbc-capital-raises-price-target-for-texas-capital-tcbi-to-100-tcbi-stock-news
[2] https://www.gurufocus.com/news/2987157/rbc-capital-raises-price-target-for-texas-capital-tcbi-to-100-tcbi-stock-news