UPDATE: Deutsche Bank Reiterates on Texas Capital Bancshares on Raised Core EPS

In a report published Thursday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on

, and raised the price target from $51.00 to $53.00. In the report, Deutsche Bank noted, “Core EPS to $3.03/$3.38/$3.85 for FY13/14/15 We raised our core EPS est. and target price to reflect stronger NII (reflecting better-than-expected loan gr. and near-term NIM upside) and lower expenses. We continue to expect market share gains and a relatively strong TX economy to drive solid balance sheet growth, supporting EPS trends. While we think some investors may need greater clarity on FY14 warehouse trends and near-term expense gr., given weaker mortgage volumes and continued strong hiring activity, respectively, we note that share price upside could prove material over the longer-term given continued solid loan growth in the HFI portfolio and TCBI's material asset sensitivity. We expect the combo of stronger loan gr., lower exp. gr., and the 3Q/4QE positive NIM trend to support the shares.” Texas Capital Bancshares closed on Wednesday at $47.79.