Origin Bancorp named a ‘Best Idea’ at Stephens

Stephens initially added Independent Bank (IBTX) to the firm’s “Best Ideas List” entering 2024 due to an expectation of net interest margin outperformance, but the analyst is changing “Best Idea” to Origin Bancorp (OBK). While the firm expects improving net interest margin at Independent, it notes that the bank’s guidance implies a considerable rebound beyond the firm’s forecast, which presents elevated risk in the near-term. Meanwhile, Origin’s revenue outlook remains excellent and the bank has continued to play offense through its recent market expansion in South Alabama and Florida Panhandle, says the firm, which thinks the company’s guidance is “conservative.” Stephens has Overweight ratings on both stocks and a $36 price target on Origin Bancorp shares.