Wunderlich Maintains Hold on Texas Capital Bancshares (TCBI)

Wunderlich is out with its report today on Texas Capital Bancshares

, maintaining Hold. In a note to clients, Wunderlich writes, "We maintain our Hold rating on shares of Texas Capital as well as our $25 price target. TCBI's 1Q11 EPS of $0.31 was in line with consensus, but $0.02 light of our estimate, as declining loan balances led to a sequential decline in top-line revenue, which was partially offset by reduced credit costs vs. the prior quarter. Our $25 price target values TCBI at 1.6 times 2011 projected TBV/share, which is a slight premium to Southern peers. Although we are attracted to the long-term growth story of TCBI, we believe there is insufficient upside at current levels, absent a sale of the company, to warrant a Buy recommendation at this time." Shares of TCBI closed Wednesday at $24.72, down 0.73% from Tuesday's close.