With some exceptions, bank stock investors have to choose between companies with strong leverage to higher rates (like M&T Bank (MTB) and Comerica (CMA)) and those with stronger loan growth. In many cases, “both” is not an option, which makes Texas Capital Bancshares (TCBI) a pretty exceptional growth story right now.
Deposit
costs are rising and Texas Capital’s lending portfolio isn’t exactly
low-risk, but I expect above-average growth from this lender to
continue, particularly as it expands its national lending opportunities.
Valuation is a difficult call; more traditional valuation approaches
would say that these shares are quite expensive but traditional
valuation approaches don’t necessarily fit a non-traditional growth
story.
Read the full article here:
Texas Capital's Strong Loan Growth And Spread Leverage Is A Potent Growth Cocktail
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