Keefe Bruyette analyst Catherine Mealor lowered the firm’s price target on Bank OZK (OZK) to $40 from $45 and keeps a Market Perform rating on the shares. The analyst recommends a pair trade of overweight South State (SSB) and underweight Bank OZK. Mealor is cautious on Bank OZK into 2023 as she believes the bank has greater risk for funding cost pressures alongside higher 2023 loan growth. The perception of greater credit risk will also weigh on the stock’s valuation near term as recession fears weigh on investor sentiment, Mealor tells investors in a research note.
Published first on TheFly
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