Raymond James changes three bank ratings ahead of Q1 reports

Raymond James analysts upgraded BOK Financial (BOK) to Outperform from Market Perform with a $103 price target, upgraded Old Second Bancorp (OSBC) to Strong Buy from Outperform with a $17 price target, and downgraded Texas Capital (TCBI) to Market Perform from Outperform without a price target. The firm believes bank stocks are attractive overall but says credit risk “remains the largest hurdle to overcome for investors and should be analyzed on a bank-by-bank basis” Such uncertainty is likely to create continued volatility in bank stock trading, the analysts tell investors in a research note. Raymond James thinks BOK’s 2024 guidance will turn out to be conservative and says Old Second appears to be quarters ahead of its peers in downgrading credit and taking losses. For Texas Capital, the firm sees the bank’s revenue headwinds that impacted Q4 lingering for longer than expected.