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Investing.com - Morgan Stanley downgraded Cadence BanCorp (NYSE:CADE) from Overweight to Equalweight and lowered its price target to $40.00 from $47.00 following the announcement of Huntington Bancshares’ acquisition plan. The $7.1 billion market cap bank has seen its shares surge nearly 28% over the past six months, with the stock currently trading at $38.09.
The downgrade reflects Morgan Stanley’s decision to "move to the sidelines" after Huntington Bancshares (NASDAQ:HBAN) revealed its intention to acquire Cadence BanCorp. According to InvestingPro data, CADE has maintained dividend payments for 41 consecutive years, with a current yield of 3%.
Morgan Stanley updated its price target to $40.00 to align with Huntington’s announced offer price of $39.77 per share for Cadence.
The financial services firm previously maintained an Overweight rating on Cadence BanCorp, indicating a more positive outlook before the acquisition announcement.
The rating change comes as Cadence shareholders await the completion of the proposed transaction with Huntington Bancshares. Trading at 13.8 times earnings, CADE maintains a "GOOD" financial health score according to InvestingPro, which offers comprehensive analysis and additional insights in its detailed Pro Research Report.
In other recent news, Huntington Bancshares has announced its acquisition of Cadence Bank in a $7.4 billion all-stock transaction. This move is part of a broader trend of increased merger activity in the banking sector, as institutions seek greater scale and efficiency. Following this announcement, Moody’s Ratings affirmed Huntington Bancshares’ ratings but shifted its outlook to negative, reflecting potential challenges ahead. Meanwhile, Cadence Bancorp reported its third-quarter 2025 earnings, posting an earnings per share (EPS) of $0.81, which exceeded analyst expectations of $0.71. However, its revenue fell short of forecasts, coming in at $517 million compared to the expected $523.34 million. Keefe, Bruyette & Woods (KBW) has reiterated its Outperform rating on Cadence BanCorp, citing a strong recent quarter and a constructive outlook despite some investor concerns. These developments indicate significant activity and changes within both Huntington Bancshares and Cadence Bank.
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