Update shared on31 Jul 2025
Fair value Increased 0.68%Analysts raised Cadence Bank's price target to $40.36 citing improving operating conditions, anticipated synergies from the Industry Bancshares acquisition, and attractive relative valuations for mid-cap banks, despite only a modest upward revision in fair value.
Analyst Commentary
- Bullish analysts see valuations for mid-cap banks, including Cadence Bank, as underappreciating an improving operating and regulatory backdrop.
- The Industry Bancshares acquisition is expected to deliver scale, cost synergies, and increased liquidity, supporting further upside.
- The stock’s year-to-date underperformance increases its potential for a rebound, creating a favorable risk/reward profile.
- Sector-wide, mid-cap banks are trading at historic discounts to larger peers, presenting a relative value opportunity as operating fundamentals improve.
- Positive indicators include signs of loan acceleration, benign credit trends, and ongoing net interest income benefits.
What's in the News
- Net charge-offs for Q2 2025 were $21.2 million, or 0.24% of average net loans and leases, down from both Q2 2024 and Q1 2025.
- No shares were repurchased from April 25, 2025 to June 30, 2025 under the buyback program.
- Cadence Bank was dropped from the Russell 2000 Dynamic Index.
Valuation Changes
Summary of Valuation Changes for Cadence Bank
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $40.09 to $40.36.
- The Consensus Revenue Growth forecasts for Cadence Bank remained effectively unchanged, at 12.5% per annum.
- The Future P/E for Cadence Bank remained effectively unchanged, moving only marginally from 11.79x to 11.83x.
Disclaimer
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