Cadence Bank upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Manan Gosalia upgraded Cadence Bank to Overweight from Equal Weight with a price target of $39, up from $36. The firm says a faster pace of interest rate cuts is positive for net interest margin at mid-cap banks and more mixed for large-cap banks. Cadence should see one of the highest increases in net interest margin, particularly as deposit costs come down, the analyst tells investors in a research note. Morgan Stanley believes Cadence has one of the lowest skews to floating rate loans and net cash, which minimizes the negative impact of lower rates.