Cadence BanCorp (CADE) PT Raised to $42 at Raymond James

Raymond James analyst Michael Rose raised the price target on Cadence BanCorp (NYSE: CADE) to $42.00 (from $34.00) while maintaining a Strong Buy rating.

The analyst comments "We reiterate our Strong Buy rating on CADE following 2Q25 results that exceeded our forecasts/consensus on a core EPS/PPNR basis, which, coupled with its updated full-year outlook (inclusive of the FCB/Industry deals), drive our EPS estimates higher (detailed below). Notable positives in 2Q25 reflected stronger fee revenue, higher net interest income, robust double-digit ann. loan growth, benign credit trends where the LLR ratio held steady, slight improvement in core loan yields, an improved NIB deposit mix with lower IB deposit costs, and TBV growth of 2.9% to $22.94. Conversely, noninterest expenses were slightly higher that projected (but below consensus), its NIM contracted vs. expectations for modest expansion due largely to the impact of investment securities added in late 1Q25/early 2Q25 (funded by FHLB borrowings), deposit growth was lower than projected, and capital ratios fell modestly reflecting the acquisition and this quarter’s growth. Net-net, we continue to view risk-reward positively where shares continue to trade at a discount vs. peers despite solid projected profitability (and bolstered by its recent acquisitions)."

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