Raymond James has raised the price target for South State Corporation (NYSE:SSB) to $120 per share from the previous $115, sustaining a Strong Buy rating on the stock after the bank’s fourth-quarter results surpassed expectations. This updated valuation closely matches InvestingPro’s Fair Value estimate, which highlights the stock as currently undervalued in the market. Across various analysts, price targets for South State extend from $103 to $122, with a strong consensus recommendation rated at 1.57, hovering between Strong Buy and Buy classifications.
The regional bank demonstrated an encouraging fiscal performance in the fourth quarter of 2025, exceeding the projections of both Raymond James and broader market consensus in terms of core earnings per share (EPS) and pre-provision income. South State’s lending and deposit activities exhibited an 8% annualized growth, contributing to net interest income that outpaced analyst predictions. Over the last twelve months, the institution has sustained a notable revenue increase of 39.42%, with diluted earnings per share reaching $7.27.
Fee-based revenue streams, particularly from the correspondent banking segment, also showed strength, and credit quality remained stable, resulting in a loan loss provision that was lower than anticipated. Tangible book value rose by 3.3% to $56.27 per share. At present, South State trades with a price-to-earnings (P/E) ratio of 13.72 and a price-to-book (P/B) ratio of 1.12. InvestingPro’s financial health assessment assigns the bank a "GOOD" rating, scoring 2.7 out of 5. Investors interested in more comprehensive analysis can access the detailed Pro Research Report, which covers South State alongside more than 1,400 U.S. publicly traded firms.
Additionally, Raymond James highlighted the bank’s robust share repurchase activity during the quarter, with South State buying back 2 million shares. This exceeds not only Raymond James’ forecast of 1 million but also consensus estimates of 0.9 million shares. The bank has also introduced a new buyback program authorizing the repurchase of 5.56 million shares. With a current market capitalization valued at approximately $10.04 billion, South State continues to focus on enhancing shareholder returns through its consistent approach to share repurchases and dividends, having maintained uninterrupted dividend payments for 29 years.
The brokerage firm also expressed increased confidence in South State’s growth trajectory, supported by five consecutive quarters showing loan production growth and stronger income from correspondent banking services. The bank anticipates noninterest expenses to expand by roughly 4%, which factors in the costs of new hiring and technology investments. Data from InvestingPro reveal that eight analysts have revised their earnings estimates upward in response to recent performance, indicating expectations of continued profitability this fiscal year. South State has also sustained dividend hikes for 14 straight years, with its current yield standing at 2.39%.
In other recent developments, South State reported earnings per share of $2.47 for the fourth quarter of 2025, outperforming the forecasted $2.10 figure, representing a positive earnings surprise of 17.62%. Revenues were also stronger than anticipated, totaling $686 million compared to the expected $660.72 million, driven by vigorous loan and deposit growth. While analysts have noted the favorable results, specific changes to ratings or price targets were not detailed at this time. Market response has reflected optimism regarding the company’s performance. These results emphasize South State Corp’s solid standing in the financial services sector at present.
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