Morgan Keegan Reiterates Buy On Texas Capital Bancshares, $35 PT

In a note out today, Morgan Keegan reiterated a buy rating on Texas Capital Bancshares

, saying “TCBI remains one of the best and most sustainable growth stories in banking, operating in the healthiest economy in the nation.” Morgan Keegan has a $35 price target on the stock, implying significant upside from current levels. “In our view, valuation does not reflect outsized growth and return profile or increasing franchise value. TCBI currently trades at 11.6x our 2013 EPS estimate and 2.0x TBV. This compares to the 13.1x and 2.2x medians for Texas peers. TCBI's growth upside is much more favorable in our view. Our 12-month price target of $35 implies 15x our FY12 EPS estimate of $2.30 and 2.0x our YE12 TBV estimate,” Morgan Keegan said in the note.