Texas Capital Bancshares stock price target raised to $79 by Citi

Published 18/07/2025, 10:52
Texas Capital Bancshares stock price target raised to $79 by Citi

Investing.com - Citi raised its price target on Texas Capital Bancshares (NASDAQ:TCBI) to $79.00 from $69.00 on Friday, while maintaining a Sell rating on the stock. The bank’s shares, currently trading at $89.47, have delivered an impressive 35.48% return over the past year, with analyst targets ranging from $69 to $102.

The price target increase reflects Texas Capital’s improved loan growth outlook, better pre-provision net revenue expectations, and an improving credit outlook, according to Citi’s analysis.

Despite the higher price target, Citi maintained its Sell rating, noting that while the bank’s five-year transformation plan is nearly complete, there appears to be limited upside potential from current levels.

Citi acknowledged being "incorrect" in its stock rating relative to share price movement over the past year, and called the substantial EPS improvement from 2023 to 2026 "applause worthy."

The firm continues to view Texas Capital shares as "somewhat expensive" given the bank’s profitability and return profile outlook, which Citi states remains below peers, while the stock trades at an above-peer valuation.

In other recent news, Texas Capital Bancshares reported a strong second quarter for 2025, exceeding analysts’ expectations with earnings per share (EPS) of $1.63, significantly higher than the forecasted $1.28. The company’s revenue also surpassed projections, reaching $307.46 million compared to the anticipated $299.22 million. This positive performance led Raymond (NSE:RYMD) James to raise its price target for Texas Capital Bancshares from $80.00 to $96.00, maintaining an Outperform rating. The bank’s outlook for the year has improved, with fee income for the third quarter of 2025 expected to be between $60 million and $65 million. Texas Capital Bancshares reiterated its return on assets target of 1.1% for the second half of 2025, with expectations for further improvements in the future. The firm also highlighted a 100% year-over-year surge in adjusted net income, demonstrating effective cost management and strategic growth initiatives. Texas Capital Bancshares continues to focus on expanding its client relationships and enhancing its investment banking platform, which contributed to the strong financial results.

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