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Fly News Breaks for December 18, 2019
IBTX, TCBI
Dec 18, 2019 | 09:17 EDT
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.