Wells upgrades Bank OZK to Equal Weight on less credit risk near-term

Wells Fargo upgraded Bank OZK (OZK) to Equal Weight from Underweight with a price target of $48, up from $40. The firm says its credit-event driven thesis is “becoming harder to defend,” as the new Trump administration and management’s ability to extend maturities “pushes out tail-risk.” While Bank OZK’s long-term thesis is unchanged, its credit risk is pushed out, and the stock’s valuation “remains deeply discounted,” the analyst tells investors in a research note. Stable credit for one-quitter doesn’t change the long-term thesis, but it likely gets pushed out given more relaxed regulation, contends Wells.