Analyst Gary Tenner from D.A. Davidson maintained a Buy rating on Cadence Bank and keeping the price target at $42.00.
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Gary Tenner has given his Buy rating due to a combination of factors that suggest a positive outlook for Cadence Bank. The bank is well-positioned to maintain its improved pace of organic growth and shows a keen interest in mergers and acquisitions, which are contributing to an optimistic revenue growth forecast for the year. Current trends are aligning with expectations, and there is no significant deviation from the updated 2026 guidance provided in July.
Furthermore, Gary Tenner notes a positive estimate bias, with potential enhancements from loan growth, although this is subject to changes in the rate environment due to Cadence Bank’s modest asset sensitivity. The decision to maintain a Buy rating is supported by revisions in estimates for 2025 and 2026, reflecting lower provision and noninterest expense run rates. The $42 price target is based on a 12x multiple of the 2026 earnings estimate of $3.49 and 1.7x the 2026 tangible book value.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $40.00 price target.