Third Coast Bancshares initiated with an Outperform at Keefe Bruyette

Keefe Bruyette initiated coverage of Third Coast Bancshares with an Outperform rating and $26 price target, offering investors a potential return of 37% over the next year. The analyst likes Third Coast’s “strong” Texas markets, “robust” organic growth profile, “scalable” franchise and ongoing positive operating leverage. The firm believes the stock’s valuation gap to peers should narrow as its profitability improves and asset quality “remains clean.” It says the stock is “on sale” trading at 82% of tangible book value.