South State upgraded to Buy from Neutral at Citi

Citi upgraded South State (SSB) to Buy from Neutral with a price target of $128, up from $106. With the combination of legacy CenterState, South State, and now Independent, the improved operational and earnings outlook offers a “clearly positive risk/reward” at today’s share price, the analyst tells investors in a research note. The firm says that while South State’s footprint extension into Texas does increase the potential operational “turbulence,” the stock’s valuation offers is “too good to ignore.” South State’s balance sheet is well positioned for organic net interest margin expansion while a securities restructuring more than offsets the sale lease-back of branches, Citi adds.