Raymond James raises Cadence BanCorp stock price target to $42 on strong Q2

Published 25/07/2025, 03:32
Raymond James raises Cadence BanCorp stock price target to $42 on strong Q2

Investing.com - Raymond (NSE:RYMD) James raised its price target on Cadence BanCorp (NYSE:CADE) to $42.00 from $34.00 on Friday, while maintaining a Strong Buy rating following the bank’s second-quarter 2025 results. Currently trading at $35.04, the stock carries a consensus Buy recommendation from analysts, with InvestingPro data showing six analysts recently revising earnings estimates upward.

The bank exceeded Raymond James’ forecasts and consensus estimates on core earnings per share and pre-provision net revenue, prompting the firm to raise its full-year earnings estimates for Cadence BanCorp.

Raymond James highlighted several positive factors from the quarter, including stronger fee revenue, higher net interest income, robust double-digit annualized loan growth, and benign credit trends. The bank also showed improvement in core loan yields, better non-interest-bearing deposit mix with lower interest-bearing deposit costs, and tangible book value growth of 2.9% to $22.94.

Some negative aspects noted included slightly higher non-interest expenses than projected, net interest margin contraction against expectations for modest expansion, lower-than-projected deposit growth, and modest declines in capital ratios reflecting recent acquisition activity and quarterly growth.

Raymond James continues to view Cadence BanCorp’s risk-reward profile positively, noting that shares trade at a discount compared to peers despite solid projected profitability, which has been bolstered by recent acquisitions including the FCB and Industry deals. According to InvestingPro analysis, the stock appears undervalued, with additional insights available in the comprehensive Pro Research Report, one of 1,400+ detailed company analyses available to subscribers.

In other recent news, Cadence Bank has completed its acquisition of Industry Bancshares, a transaction valued at $4.4 billion. This acquisition, finalized on July 1, 2025, was approved by regulators and shareholders and is expected to enhance Cadence’s profitability metrics. Piper Sandler upgraded Cadence BanCorp’s stock rating from Neutral to Overweight, citing the acquisition’s potential benefits, and raised the price target to $42.00. The firm projects improvements in Cadence’s return on assets and equity by 2026. Keefe, Bruyette & Woods (KBW) reiterated an Outperform rating for Cadence BanCorp, noting the early completion of the deal as a positive factor for earnings per share. Additionally, Moody’s Ratings affirmed Cadence Bank’s ratings while adjusting the outlook to stable, maintaining various long-term and short-term deposit ratings. This acquisition marks a strategic expansion for Cadence Bank, significantly increasing its presence in Texas.

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