DA Davidson elevated its price target on Texas Capital Bancshares (NASDAQ:TCBI) to $104.00 from the prior $94.00, keeping its Neutral stance on the shares as of Friday. The new valuation target is positioned slightly below the current trading price of $100.84, as well as near the 52-week high of $105.36.
This revision accompanies what DA Davidson referred to as yet another impressive quarter for the bank, which exceeded consensus expectations with a return on assets (ROA) reaching 1.20%. Data from InvestingPro indicates that over the past twelve months, the bank sustained an ROA of 1.06%, alongside anticipated growth in net income throughout the current year.
According to DA Davidson’s analysis, Texas Capital Bancshares has now surpassed its 1.1% ROA target for two successive quarters. While the bank's management has not introduced a revised ROA goal, the 1.1% benchmark is effectively regarded as a baseline in light of positive earnings projections extending into 2026.
The research firm also emphasized management's remarks that substantial investments in personnel, product offerings, and services have been completed. The strategic emphasis is shifting toward operational execution and leveraging these investments to scale the business as the bank records substantial client growth.
In addition to DA Davidson's update, Texas Capital Bancshares reported strong fourth-quarter results for 2025, outstripping market forecasts. The reported earnings per share (EPS) stood at $2.08, surpassing an expected $1.76, with revenues totaling $327.48 million, higher than the $323.29 million consensus estimate.
Following these results, Stephens increased its price target to $114 while maintaining an Overweight rating, citing robust net interest income and proficient cost management. Concurrently, RBC Capital raised its outlook, setting a new price target at $110 and retaining a Sector Perform rating, acknowledging the solid quarter despite some typical seasonal challenges.
Collectively, these analyst updates underscore Texas Capital Bancshares’ ability to consistently deliver strong financial outcomes and adeptly manage credit conditions.