Texas Capital Bancshares (TCBI) third-quarter 2012 operating earnings marginally surpassed the Zacks Consensus Estimate. Quarterly results benefited from an increased top line aided by improved net interest income and non-interest income.
The company's business model remains a primary growth driver. In addition, the gain in market share from its competitors and organic growth is impressive. Its efforts to hire experienced bankers and expand its presence are encouraging.
We believe that with an eventual improvement in the Texas economy, the company would be poised to experience a further increase in earnings. Our six-month target price of $53.00 equates to 18.2x Zacks Consensus Estimate for 2012. This target price implies an expected return of about 14.6% over that period, consistent with our long-term Outperform recommendation on the shares.
TEXAS CAP BCSHS (TCBI): Free Stock Analysis Report
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