UPDATE: Bank of America Initiates Coverage on Texas Capital Bancshares on Best-In-Class Status

In a report published Wednesday, Bank of America analyst Ebrahim H. Poonawala initiated coverage on Texas Capital Bancshares (NASDAQ: TCBI) with a Buy rating and $55.00 price target.

In the report, Bank of America noted, “We are initiating coverage on Dallas, Texas based Texas Capital (TCBI) with a Buy rating and $55 price objective. We view TCBI as a best-in-class TX focused commercial lender that has delivered above average returns to shareholders since its 2003 IPO with shares up 318% since vs a 1% decline for the KBW Regional Bank Index and a 131% gain for the Russell 2000. Over the last few years management has capitalized on the market share opportunities in the mortgage businesses and expanded its nationally focused mortgage warehouse lending operations which account for 20-25% of TCBI's EPS. Our '14/'15 EPS estimates imply 15% in average EPS growth vs 9% median for high-growth peers.”

Texas Capital Bancshares closed on Tuesday at $44.75.