AnalystConsensusTarget updated the narrative for CADE

Analysts have modestly raised their price target for Cadence Bank to $42.70. This reflects updated merger expectations and alignment with recent market research following the announced acquisition by Huntington Bancshares.

Analyst Commentary

Recent street research provides a mix of supportive and cautious viewpoints on Cadence Bank’s prospects following the announced merger with Huntington Bancshares. The feedback centers around the deal’s perceived strategic fit, its implications for the combined company’s growth, and the risks associated with integration and valuation.

• Bullish analysts have highlighted the synergy potential from the merger, viewing the acquisition as well-aligned with Huntington’s strategy for expansion in Texas and the broader Southeast region.
• Upward adjustments to price targets suggest optimism about the refreshed combined company outlook, with expectations for above-average performance relative to sector peers after the merger.
• Some analysts have upgraded Cadence’s rating, believing the transaction will unlock incremental value and support the stock's relative valuation in the context of the new business mix.
• The transaction is viewed as a confirmation of management's focus on long-term growth opportunities and scale advantages for the combined institution.

• Bearish analysts have moved to more neutral stances, concerned that most of the deal’s upside is already priced in after the merger announcement.
• There is caution regarding integration risk and execution, especially given the complexities of merging two sizable regional banks and the timeline projected into 2026.
• Certain price target reductions reflect a belief that near-term share price appreciation is limited as investors await clarity on post-merger performance and realization of synergies.
• Some analysts point out that while the strategic fit is compelling, any delays or complications in closing the deal could weigh on sentiment and valuation multiples in the interim.

What's in the News

• Huntington Bancshares has agreed to acquire Cadence Bank for approximately $7.4 billion in stock. The CEOs described the deal as a significant step for Huntington, with expectations for potential further deals in the future (The Wall Street Journal).
• Under the terms of the pending acquisition, Cadence Bank shareholders will receive 2.475 Huntington shares for each Cadence share. Upon completion, Huntington shareholders will own about 77% of the combined company, while Cadence shareholders will hold 23%.
• James D. "Dan" Rollins III, Cadence Bank's Chairman and CEO, will join Huntington as a non-executive Vice Chairman and serve on its Board, along with two other Cadence directors.
• The merger is expected to close in the first quarter of 2026, pending shareholder and regulatory approval. Cadence branches will retain their current footprint under the Huntington brand, with no planned closures.
• Cadence Bank introduced a new partnership with Magnusmode, rolling out 10 digital banking guides aimed at supporting greater accessibility to financial services for individuals requiring step-by-step assistance.

Valuation Changes

• Consensus Analyst Price Target has risen slightly to $42.70, up from $42.27 previously.
• Discount Rate has declined modestly from 6.87% to 6.78%.
• Revenue Growth projections have fallen to 11.41%, down from the earlier estimate of 12.67%.
• Net Profit Margin is slightly lower at 31.88%, compared to the prior 32.30%.
• Future P/E Ratio has increased to 12.88x, up from 12.55x previously.