Texas Capital Bancshares stock holds Neutral rating at DA Davidson

Investing.com - DA Davidson has maintained its Neutral rating on Texas Capital Bancshares (NASDAQ:TCBI) with a price target of $91.00. Currently trading at $83.23, the stock sits within analysts’ target range of $75-$100, though InvestingPro analysis suggests the stock is currently overvalued.

The bank delivered another record quarter that significantly exceeded consensus estimates, with return on assets reaching 1.30%, surpassing its 1.1% target. With a market capitalization of $3.8 billion and a P/E ratio of 32.94, InvestingPro data shows the company maintains strong financial metrics despite trading at a high earnings multiple.

Despite the strong performance, DA Davidson noted potential near-term headwinds, including the outlook for two Federal Reserve rate cuts and seasonal weakness in mortgage finance during the first quarter.

The firm also highlighted that salary and benefits expenses tend to be seasonally higher in the first quarter, which could impact profitability.

DA Davidson acknowledged that Texas Capital Bancshares maintains top-quartile capital levels and strong credit trends, suggesting there is "more upside after hitting its targets" as the company is "still in the early innings of realizing the full benefits of this transformation."

In other recent news, Texas Capital Bancshares reported record earnings for the third quarter of 2025, with earnings per share (EPS) reaching $2.18, significantly surpassing analysts’ forecast of $1.77. The company also achieved a record quarterly revenue of $340 million, marking a 12% increase compared to the same period last year. Following these strong financial results, Piper Sandler raised its price target for Texas Capital Bancshares stock to $86.00 from $84.00, while maintaining a Neutral rating. The bank’s improved expenses, stronger net interest income, higher fees, and lower loan loss provisions contributed to the earnings beat. These developments highlight Texas Capital’s robust financial performance and the positive response from analysts.

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