Carter Bankshares upgraded to Outperform on valuation at Raymond James

Raymond James upgraded Carter Bankshares to Outperform from Market Perform with a $17 price target. The upgrade reflects the bank’s discounted valuation at 87% of tangible book value, "solid profitability" to support book value growth, active share repurchases, and a potential re-rating if the loan to the Governor of West Virginia is resolved, the analyst tells investors in a research note. The "exceptionally" large loan to the governor is back in litigation, which will likely strengthen Carter’s position as assets are cross-collateralized and the loans are personally guaranteed, says the firm.