Capital City Bank price target lowered to $30 from $34 at Piper Sandler

Piper Sandler analyst Stephen Scouten lowered the firm’s price target on Capital City Bank to $30 from $34 and keeps an Overweight rating on the shares. The firm is lowering its 2024/2025’s to $2.70/$2.50 from $2.73/$2.83 given its expectations for modest balance sheet growth and a lower net interest margin trajectory as it models in 4 rate cuts through 2025. Looking at the market today, Piper thinks deposit strength/net interest margin stability and strong credit quality remain paramount, and this is the marker of the Capital City Bank franchise. The firm does expect to see some continued pressure in the quarters ahead, but has confidence that Capital City Bank will outperform peers in a higher-for-longer rate environment.