Texas Capital Bancshares' (TCBI) first-quarter 2012 operating earnings per share surpassed the Zacks Consensus Estimate. The results were also significantly ahead of the prior-year quarter's earnings. Quarterly results benefited from an increase in the top line aided by an augmentation of both net interest income as well as non-interest income.
Texas Capital's business model remains a chief growth driver. The gain in market share from its competitors and organic growth is impressive. Credit quality improvement is also encouraging. The company's efforts to hire experienced bankers and expand its presence are impressive.
We believe that with an eventual improvement in the Texan economy, the company would be further poised to experience an increase in earnings. Our six-month target price of $46.00 equates to 16.7x our earnings estimate for 2012. This price target implies an expected total return of 18.8% over that period.
TEXAS CAP BCSHS (TCBI): Free Stock Analysis Report
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