DA Davidson reiterates Buy rating on Cadence BanCorp stock with $42 price target

Published 20/08/2025, 15:10
DA Davidson reiterates Buy rating on Cadence BanCorp stock with $42 price target

Investing.com - DA Davidson has reiterated its Buy rating on Cadence BanCorp (NYSE:CADE) stock, maintaining a price target of $42.00. Currently trading at $35.42, InvestingPro analysis suggests the stock is undervalued, with a market capitalization of $6.62 billion and a P/E ratio of 12.4x.

The research firm believes Cadence BanCorp is well-positioned to maintain its improved pace of organic growth while remaining interested in merger and acquisition opportunities. This combination is driving the improved revenue growth outlook for the bank this year, supported by impressive revenue growth of 42.8% and a solid dividend yield of 3.1%.

According to DA Davidson, quarter-to-date trends appear to be in line with expectations, showing no significant deviation from the updated 2026 guidance that Cadence BanCorp outlined in July. InvestingPro data reveals that 9 analysts have revised their earnings upwards for the upcoming period, with 5 more key insights available to subscribers.

The firm suggests that the estimate bias for Cadence BanCorp remains positive, with potential upside from loan growth. Performance remains subject to shifts in the rate environment, given the bank’s modest asset sensitivity.

DA Davidson’s maintained Buy rating and $42 price target reflect continued confidence in Cadence BanCorp’s growth trajectory and financial outlook.

In other recent news, Cadence Bancorp reported its second-quarter 2025 earnings, exceeding Wall Street expectations. The company achieved an earnings per share (EPS) of $0.73, surpassing the projected $0.68. Despite this earnings beat, the company’s stock experienced a decline of 1.21% in after-hours trading. Investors appear to be considering broader market conditions and future guidance amidst Cadence Bancorp’s strong financial performance. The company’s strategic expansions have also been noted as part of its recent developments. Analyst feedback, although not directly mentioned, often plays a role in how earnings results are perceived by the market. These developments highlight the ongoing considerations investors must weigh when evaluating Cadence Bancorp’s financial health.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.