Wunderlich Securities Expects Great Earnings Leverage For Texas Capital Bancshares

In a report published Thursday, Wunderlich Securities analyst Kevin Reynolds reiterated a Buy rating and $75.00 price target on

. In the report, Wunderlich Securities noted, “We reiterate our Buy rating on shares of Texas Capital Bancshares (TCBI) as we maintain our $75 price target after the company reported 3Q14 results that beat consensus expectations for the second straight quarter. TCBI's 3Q14 EPS of $0.78 was $0.02 above consensus. Inside the numbers, strong HFI loan growth and modest HFS loan growth drove results, although the NIM was a little light versus consensus. Overall, TCBI posted a strong quarter. Long term, TCBI is the most asset-sensitive name in our universe. If rates never rise again, TCBI remains an above-average growth story that should produce robust EPS growth, but when short-term rates increase, we expect a tremendous amount of earnings leverage will be unleashed.” Texas Capital Bancshares closed on Wednesday at $56.22.