Veritex, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Stephen Scouten from Piper Sandler downgraded the rating on the stock to a Hold and gave it a $34.00 price target.
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Stephen Scouten’s rating is based on the recent merger announcement between Veritex Holdings and Huntington Bancshares. The market has already reacted positively to this news, and the anticipated benefits of the merger have been reflected in the stock’s current price. As a result, the potential for further upside appears limited at this point.
Additionally, while the merger presents opportunities, there are risks involved, such as potential issues with asset quality or challenges in obtaining deal approval. These factors contribute to a more cautious outlook, leading to the Hold rating. Scouten’s decision to downgrade the stock to Neutral reflects a balanced view of the potential rewards and risks associated with the merger.
In another report released yesterday, KBW also maintained a Hold rating on the stock with a $30.00 price target.
VBTX’s price has also changed moderately for the past six months – from $26.690 to $31.750, which is a 18.96% increase.