Stephens analyst Matt Olney downgraded Independent Bank (IBTX) to Equal Weight from Overweight with a price target of $67, up from $61, after updating his forecasts to include the Texas Capital (TCBI) merger of equals that is expected to close in mid-2020. He is concerned that the EPS run-rate from Texas Capital could require a near-term negative revision for the combined bank and has intermediate term worries that deal execution could present challenges given the banks' dissimilar business models. Over the longer-term, though, Olney said the financial attractiveness of the acquisition is "unquestioned" and the increased scale in the metro-Texas market could make it an attractive franchise in a takeout scenario.

Piper Sandler downgraded Independent Bank to Underweight from Neutral with a price target of $38, down from $48. The bank's deposit costs were up another 19 basis points in Q1 and the expected net interest margin inflection was pushed out another quarter, the analyst tells investors in a research note. The firm believes Independent Bank "looks poised to underperform peers" from an overall profitability perspective. It thinks the shares will lag over the next 12 months until investors get some certainty into a Q4 of 2025 run-rate and the 2026 earnings potential of the franchise.