Stellar Bancorp price target lowered to $32 from $34 at Raymond James

Raymond James analyst David Feaster lowered the firm’s price target on Stellar Bancorp (STEL) to $32 from $34 and keeps an Outperform rating on the shares following Q3 results. Raymond James told investors that loan growth remains challenging as payoffs/paydowns continue to offset solid originations, where there was some slippage into Q4 as well. The firm added that pipelines suggest activity remains solid and it expects to outpace these headwinds next year. Raymond James continues to see the outlook favorably for Stellar Bancorp as growth accelerates, and the firm sees it as likely to outperform in light of the “strong” economic backdrop in Texas and its pure-play footprint, especially as industry consolidation continues.