Raymond James Starts Red River Banchsares (RRBI) at Outperform, 'Pure Play Louisiana Bank'

Raymond James analyst Michael Rose initiates coverage on Red River Banchsares (NASDAQ: RRBI) with a Outperform rating and a price target of $57.00.

The analyst comments "We are initiating coverage of Red River Bancshares (NASDAQ: RRBI) with an Outperform rating and a $57 price target. Red River is a pure-play Louisiana community bank that boasts an attractive low-cost deposit base, strong historical asset quality, and robust capital levels (CET1: 17.1%) which should support mid-single digit loan growth (in-line with peers) despite a weaker relative economic backdrop in Louisiana (where GDP and population growth has lagged national averages recently). Moreover, our positive view reflects the sustainability of its profitability profile where RRBI is well-positioned to drive NIM expansion and improve operational efficiency. As such, consensus estimates project low-double digit TBV growth through 2026 (fourth highest of 17 bank peer group) which, in our view, is not reflected in its discounted valuation relative to peers as shares trade at ~0.9x AOCI-adjusted TBV."

For an analyst ratings summary and ratings history on Red River Banchsares click here. For more ratings news on Red River Banchsares click here.

Shares of Red River Banchsares closed at $48.67 yesterday.

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