Texas Capital Bancshares stock price target raised to $96 by Raymond James

Investing.com - Raymond (NSE:RYMD) James raised its price target on Texas Capital Bancshares (NASDAQ:TCBI) to $96.00 from $80.00 on Thursday, while maintaining an Outperform rating on the stock. Currently trading at $89.92, InvestingPro analysis suggests the stock is slightly overvalued, though 5 analysts have recently revised their earnings expectations upward.

The upgrade follows Texas Capital Bancshares’ second-quarter 2025 results, which exceeded Raymond James’ forecasts and consensus estimates on core earnings per share and pre-provision net revenue metrics.

The bank’s full-year outlook was modestly improved, with near-term guidance projecting fee income of approximately $60-65 million for the third quarter of 2025, including about $35-40 million from investment banking and trading activities.

Texas Capital Bancshares reiterated its 1.1% return on assets target for the second half of 2025, with expectations for further improvement in subsequent years as investments mature.

Raymond James noted that Texas Capital Bancshares shares have outperformed since what it called "Liberation Day," rising 28.6% compared to 18.1% for the banking sector index and 16.1% for the S&P 500.

In other recent news, Texas Capital Bancshares Inc. reported strong financial results for the second quarter of 2025, significantly surpassing analysts’ expectations. The company posted an earnings per share (EPS) of $1.63, exceeding the forecasted $1.28 by 27.34%. Revenue also came in higher than expected at $307.46 million, beating the anticipated $299.22 million by 2.75%. Texas Capital reaffirmed its guidance for low double-digit revenue growth, emphasizing confidence in its strategic initiatives and future performance. The company noted a 16% year-over-year increase in adjusted total revenue, reaching $42.3 million. Texas Capital Bancshares also highlighted a 100% surge in adjusted net income to common shareholders, reflecting effective cost management and strategic growth efforts. Analysts from firms like Raymond James have shown interest in the company’s investment banking pipeline and strategic growth initiatives, indicating a positive outlook for future growth. The company also noted its focus on expanding client relationships and strategic investments in its wealth management platform.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.