Stellar Bancorp price target raised to $31 from $30 at Raymond James

Raymond James raised the firm’s price target on Stellar Bancorp (STEL) to $31 from $30 and keeps an Outperform rating on the shares. Stellar Bancorp reported solid Q4 results, with loans that declined more than expected, which is not reflective of its growth capabilities, but rather elevated payoffs and paydowns within its commercial real estate portfolio, the analyst tells investors in a research note. While CRE paydowns likely remain a headwind near-term, the firm expects growth to inflect in the mid-single digit area, supported by the strength of the Houston economy, and sees continued core net interest margin expansion going forward.