Texas Capital price target raised to $63 from $61 at DA Davidson

DA Davidson analyst Peter Winter raised the firm’s price target on Texas Capital to $63 from $61 and keeps a Neutral rating on the shares after its Q4 results. The bank is asset sensitive, which pressures its net interest income on a static basis by $40M in a down 100 bps rate shock, but ultimately lower rates will help drive fee income growth and mortgage warehouse volumes, the analyst tells investors in a research note. The firm added that as a result, Texas Capital expects to resume pre-provision net revenue growth in the second half of 2024.