Truist downgraded Texas Capital to Hold from Buy with a price target of $66, down from $72. The analyst reduced estimates to reflect continued mortgage headwinds and lower confidence in fee income offsets, considering fewer Federal Reserve rate cuts through 2025. The firm believes Texas Capital’s net interest income will continue to be a drag on results from lower mortgage yields and continued deposit pricing pressures. Moreover, the bank’s balance sheet remains asset sensitive and an offsetting a resurgence in mortgage volumes is likely delayed until 2025, the analyst tells investors in a research note.
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