Texas Capital Bancshares Will Be Impacted By Fed's Rate Move, Says Analyst
Portfolio Pulse from Priya Nigam
Texas Capital Bancshares Inc (NASDAQ:TCBI) shares fell after Truist Securities predicted the Federal Reserve will cut interest rates, leading analyst Brandon King to downgrade TCBI from Buy to Hold and reduce the price target from $72 to $66. The anticipated rate cuts and other factors are expected to pressure net interest income (NII), with 2024/2025 EPS estimates 12%/13% below consensus.
April 01, 2024 | 4:06 pm
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Texas Capital Bancshares Inc shares declined following a downgrade from Buy to Hold by Truist Securities, with a reduced price target from $72 to $66, amid expectations of Federal Reserve rate cuts.
The downgrade by Truist Securities, based on anticipated Federal Reserve rate cuts and their impact on net interest income, directly affects investor sentiment towards TCBI, likely leading to a short-term negative impact on its stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100