Analysts have modestly lifted their price target on Texas Capital Bancshares to approximately $94 per share from about $92, citing slightly higher fair value estimates supported by updated assumptions for discount rates, revenue growth, profit margins, and a richer forward earnings multiple.
What's in the News
- Reaffirmed full year 2025 earnings guidance, targeting low double digit revenue growth supported by a diversified earnings platform and resilient client engagement across market cycles (company guidance)
- Reported third quarter 2025 net charge offs of $13.7 million, up from $13.0 million in the second quarter of 2025 and $6.1 million in the third quarter of 2024, indicating a continued normalization in credit costs (company disclosure)
- Completed repurchase of 801,053 shares, or about 1.74% of shares outstanding, for $58.82 million under the buyback program announced January 23, 2025, including 87,087 shares bought for $7.01 million in the third quarter of 2025 (company filing)
Valuation Changes
- Fair Value: modestly increased from $92 to approximately $93.64 per share, reflecting a slightly higher intrinsic value estimate.
- Discount Rate: edged up marginally from about 6.93 percent to roughly 6.96 percent, signaling a slightly higher required return in the valuation model.
- Revenue Growth: reduced significantly from approximately 20.56 percent to about 10.64 percent, implying a more conservative outlook for top line expansion.
- Net Profit Margin: lowered moderately from about 26.73 percent to roughly 24.36 percent, incorporating expectations for somewhat higher ongoing costs or mix effects.
- Future P/E: increased meaningfully from roughly 11.28x to about 13.29x, indicating a richer forward earnings multiple applied to projected results.
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