Piper Jaffray reiterated a Neutral rating on Texas Capital Bancshares (NASDAQ: TCBI), and raises price target to $46.00 (from $37.00), following the company's 1Q report.

Analyst Brett Rabatin commented, "In our view, challenges remain for improving profitability over the next two years, and the larger than expected LLP will likely cause some consternation. However, post results we feel better about core forward prospects. We are raising our FY16 to $2.95 (+$0.04), our FY17E to $3.52 (+$0.12) and establishing a FY18E of $3.86. We are raising our PT to $46 (+$5) based on 13x our FY17E. We have moved our valuation higher (to 13x from 11x) on stronger conviction for better profitability and operating leverage trends over the next year."

For an analyst ratings summary and ratings history on Texas Capital Bancshares click here. For more ratings news on Texas Capital Bancshares click here.

Shares of Texas Capital Bancshares closed at $43.96 yesterday.