Piper Sandler Downgrades Cadence BanCorp (CADE) to Neutral

Piper Sandler analyst Brad Milsaps downgraded Cadence BanCorp (NYSE: CADE) from Overweight to Neutral with a price target of $34.00 (from $33.00).

The analyst comments: "We are increasing our 2024E's to $2.60 (from $2.57), but lowering our 2025E's to $2.78 (from $2.88). There could be some upside to the NIM in 2H24 if NIBDs stabilize (mgmt guide to ~21% by YE vs. 20% prev). We are increasing our PT to $34, which is now ~12.25x our 2025E (up on higher industry multiples), but lowering to Neutral as YTD outperformance has played out as expected. CADE remains well-positioned overall, but it's hard for us to see incremental outperformance relative to the group at these multiples - when rate cuts should put some modest pressure on earnings power and M&A sounds unlikely in our view. We will look for another catalyst for outperformance or a pullback, but move to the sidelines as the benefits from the insurance sale have largely played out and the shares reach new highs."

For an analyst ratings summary and ratings history on Cadence BanCorp click here. For more ratings news on Cadence BanCorp click here.

Shares of Cadence BanCorp closed at $33.58 yesterday.

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