Cadence Bank price target raised to $36 from $30 at Morgan Stanley

Morgan Stanley analyst Manan Gosalia raised the firm’s price target on Cadence Bank to $36 from $30 and keeps an Equal Weight rating on the shares. Even with recent weaker macro datapoints, the firm thinks it’s “time to lean into Midcap Banks” as rate cuts are a tailwind for revenues and help alleviate credit stress. Q2 earnings gave the firm increasing conviction about an inflection for net interest income and given both “cheap” valuations and the contention that revenues are the number one driver of midcap bank stock alpha, the firm is upgrading its Midcap Banks group view to Attractive.

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