Texas Capital Bancshares stock price target raised to $100 by KBW on earnings momentum

Investing.com - Keefe, Bruyette & Woods raised its price target on Texas Capital Bancshares (NASDAQ:TCBI) to $100.00 from $86.00 on Monday, while maintaining an Outperform rating following the bank’s second-quarter 2025 results.

The investment firm highlighted an "impressive" pre-provision net revenue beat in the quarter, with net interest income, fees, and expenses all exceeding expectations. Texas Capital Bancshares also adjusted its 2025 expense target lower to "mid to high single-digit % growth" from the previous "high single-digit growth" guidance. The bank, currently valued at $4.11 billion, has demonstrated strong momentum with a 14.74% return year-to-date.

KBW noted that the investment banking pipeline should support an upward trend in fees during the second half of 2025, which combined with strong growth and net interest margin outlook, could drive the return on assets to the company’s stated target of 1.10%. Get deeper insights into TCBI’s financial health and growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.

The firm increased its earnings per share estimates for Texas Capital Bancshares to $6.11 for 2025 and $6.90 for 2026, supporting the higher price target.

KBW maintained its Outperform rating on Texas Capital Bancshares as "the positive operating leverage story continues on," according to the research note.

In other recent news, Texas Capital Bancshares reported strong financial results for the second quarter of 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $1.63 against a forecast of $1.28, and revenue of $307.46 million, exceeding the anticipated $299.22 million. Raymond (NSE:RYMD) James responded to these results by raising its price target for the company to $96, maintaining an Outperform rating, while DA Davidson increased its target to $91, citing the bank’s record performance and strategy execution. Citi also raised its price target to $79, though it maintained a Sell rating, noting limited upside potential despite the bank’s improved loan growth outlook and enhanced credit trends.

The company reiterated its return on assets target of 1.1% for the second half of 2025, with expectations for continued improvement as investments mature. Texas Capital’s adjusted net income surged 100% year-over-year, with a notable 16% increase in adjusted total revenue. The bank’s near-term guidance projects fee income of approximately $60-65 million for the third quarter, including significant contributions from investment banking and trading activities.

Texas Capital’s strategic growth initiatives include expanding its equities research coverage and enhancing its investment banking platform, which contributed to its positive financial performance. The company expects non-interest income to range between $230 million and $240 million, with a focus on expanding client relationships and strategic investments in its wealth management platform. Despite macroeconomic uncertainties and competitive pressures, Texas Capital remains optimistic about its future growth opportunities, particularly in wealth management.

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