Positive Outlook and Strategic Growth Drive Buy Rating for Cadence Bank

Morgan Stanley analyst Manan Gosalia has maintained their bullish stance on CADE stock, giving a Buy rating on July 24.

Manan Gosalia has given his Buy rating due to a combination of factors that indicate a positive outlook for Cadence Bank. The management’s confirmation that the previous guidance for a stable Net Interest Margin (NIM) was conservative suggests that there is potential for further expansion. This is supported by stronger loan growth, reduced deposit costs, and improved repricing of existing loans, all contributing to the core NIM expansion.
Additionally, Cadence Bank’s recent performance, with an operating EPS that surpassed expectations, further strengthens the case for a Buy rating. The bank’s proactive measures, such as increasing their loan growth guidance and managing deposit costs effectively, indicate a robust financial strategy. Management’s optimism about the NIM trajectory and the strategic repositioning of securities yields also contribute to the positive outlook, suggesting that Cadence Bank is well-positioned for continued growth.

In another report released on July 24, KBW also maintained a Buy rating on the stock with a $40.00 price target.