On Wednesday, Cadence Bancorp (NYSE:CADE) shares received a positive assessment from DA Davidson, with the firm raising its price target on the bank's shares to $39.00, up from the previous target of $34.50. The investment firm has sustained its Buy rating on the stock.
The upgrade follows Cadence Bancorp's robust financial performance, highlighted by a 4% increase in revenue for the second quarter. The bank's lower-than-anticipated expenses were also a contributing factor to the positive outlook.
DA Davidson notes that despite expectations for expenses to normalize at higher levels, the consistent loan growth, stable to improving asset quality metrics, and an expanding net interest margin (NIM) are favorable indicators for the bank's future.
The analyst from DA Davidson expressed confidence in Cadence Bancorp's trajectory, stating, "CADE's strong second quarter was driven by 4% revenue growth, and lower than expected expenses. While expenses should normalize higher, consistent loan growth, stable-to-improving asset quality metrics, and an expanding NIM are all positives on a go-forward basis."
Cadence Bancorp's financial health and operational performance are critical factors for investors as they consider the bank's stock. The revised price target of $39 reflects the firm's belief in the bank's capacity to maintain its growth and profitability.
Investors and market watchers will likely monitor Cadence Bancorp's performance in the coming quarters to see if the bank continues to meet the expectations set by the raised price target and maintained Buy rating.
In other recent news, Cadence Bancorp has been in the spotlight following a strong second quarter performance. The bank reported a GAAP net income of $135.1 million and adjusted net income from continuing operations of $127.9 million, alongside a robust loan growth of $430 million. Despite a slight decrease in total deposits, operational efficiencies were noted, with adjusted expenses reducing by over $12 million.
RBC Capital Markets and Truist Securities have both responded to these developments by raising their price targets for Cadence Bancorp. RBC increased its target from $31 to $35, while Truist Securities raised its target to $38 from the previous $31, both citing the bank's strong earnings and revenue results.
These are the latest in a series of recent developments for Cadence Bancorp. The bank's solid financial standing and effective cost management have been recognized by financial firms, and its outlook for 2024 remains steady. With these recent developments, Cadence Bancorp continues to highlight its commitment to growth and operational efficiency.
InvestingPro Insights
Following DA Davidson's positive assessment of Cadence Bancorp (NYSE:CADE), several key metrics from InvestingPro underscore the bank's financial landscape. With a market capitalization of $6.13 billion and a high P/E ratio of 86.57, Cadence Bancorp's valuation reflects investor confidence.
The bank has demonstrated a strong shareholder focus, raising its dividend for 11 consecutive years and maintaining dividend payments for an impressive 40 years, signaling a commitment to returning value to shareholders. Moreover, Cadence Bancorp's robust dividend yield of 2.98% as of mid-2024 stands out as a compelling factor for income-focused investors.
InvestingPro Tips reveal that Cadence Bancorp is trading near its 52-week high, with a price that is 98.39% of this peak, indicating a strong performance over the last year with a price total return of 50.55%. While the bank's net income is expected to grow this year, it is trading at a high P/E ratio relative to near-term earnings growth, which could be a point of consideration for potential investors.
For those looking to delve deeper into Cadence Bancorp's prospects, InvestingPro offers additional tips to help make informed decisions. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and gain access to the full spectrum of insights and analysis.
Investors considering Cadence Bancorp will find these InvestingPro metrics and tips valuable as they assess the bank's potential for sustained growth and shareholder returns. With additional tips available on InvestingPro, informed investment decisions are within reach.
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