Cadence Bank (CADE – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Manan Gosalia from Morgan Stanley maintained a Buy rating on the stock and has a $33.00 price target.
Manan Gosalia has given his Buy rating due to a combination of factors surrounding Cadence Bank’s strategic acquisition of Industry Bancshares. This acquisition significantly enhances Cadence’s presence in Texas by adding approximately $4 billion in deposits and 27 branches, positioning the bank within the top 10 for deposit market share in the region.
The transaction is expected to be accretive to Cadence’s earnings per share by 13% by 2026, despite a temporary dilution to tangible book value per share. The cost savings from this acquisition are projected to be substantial, with Cadence aiming to reduce Industry’s expense base by 40%. These financial benefits, alongside Cadence’s plans to improve core deposit growth and manage interest rate risks effectively, underpin the positive outlook and Buy rating.
In another report released today, KBW also maintained a Buy rating on the stock with a $38.00 price target.