Positive trend in consensus price target over the past year, with a significant increase from $35.5 to $39, indicating growing confidence in Cadence Bank’s performance and potential.
Earnings per share (EPS) of $0.69, surpassing the Zacks Consensus Estimate of $0.60, highlighting the bank’s financial growth and strong performance.
Despite positive earnings, the stock is rated as a hold due to the price-to-tangible book value (P/TBV) per share not being low enough to warrant a buy recommendation, suggesting investors should carefully consider the potential for Cadence Bank’s stock.
Cadence Bank, listed on the NYSE:CADE, is a financial institution offering a wide range of services, including commercial banking, consumer loans, and wealth management. The bank operates an extensive branch network, which supports its diverse service offerings. Competitors in the banking sector include other regional banks and larger national institutions.
Over the past year, Cadence Bank has experienced a positive trend in its consensus price target. Last month, the average price target was $39, reflecting analysts’ positive outlook on the stock. This is a significant increase from the $36.83 target last quarter and $35.5 last year, indicating growing confidence in the bank’s performance and potential.
Despite the positive trend in price targets, Raymond James has set a lower price target of $30 for Cadence. This suggests a more conservative outlook on the stock’s future performance. The bank’s recent earnings report showed strong performance, with earnings per share (EPS) of $0.69, surpassing the Zacks Consensus Estimate of $0.60. This improvement from $0.64 per share in the same quarter last year highlights Cadence’s financial growth.
Cadence Bank’s net interest margin (NIM) has improved, contributing to its strong performance. The bank faced challenges from increased industry-wide funding costs but has the opportunity to reduce these costs as interest rates decline. This strategic position is expected to support EPS growth in the coming year, with shares trading at less than 12 times the consensus EPS for 2024, suggesting attractive potential for near-term returns.
Despite the positive earnings report, the stock is currently rated as a hold due to the price-to-tangible book value (P/TBV) per share not being low enough to warrant a buy recommendation. Investors should consider these factors when assessing the potential for Cadence Bank’s stock and making informed decisions.
