Texas Capital price target lowered to $61 from $66 at Truist

Truist analyst Brandon King lowered the firm’s price target on Texas Capital to $61 from $66 and keeps a Hold rating on the shares as part of a broader research note recapping Q1 earnings among Community and Regional Banks. The firm’s updated model for Fed funds rate forecast calls for zero cuts in 2024 and four 25bps cuts in 2025 from three in 2023 and 2024 previously, the analyst tells investors in a research note. Truist is also revising its FY24 and FY25 EPS on the bank to $3.45 and $4.05 from $3.23 and $3.80, with estimate revisions primarily reflecting expectations of higher net interest income driven by the updated forward rate assumptions of no cuts in 2024 and higher securities yields, the firm states, adding that while mortgage lending will likely weigh on results through the year, new customer account growth and expanding relationships should result in further balance sheet growth.