Stephens Remains a Buy on Independent Bank Group

By Ryan Adsit

In a report released today, Matt Olney from Stephens reiterated a Buy rating on Independent Bank Group (NASDAQ: IBTX), with a price target of $72. The company’s shares opened today at $57.30.

Olney observed:

“We view IBTX as one of the premier Texas banks with a long runway of growth potential as the Company maintains a robust loan pipeline and the infrastructure/personnel in place to grow past the $10 billion asset threshold. IBTX is well positioned for additional M&A announcements (not in our forecast) due to its successful M&A track record, advantageous currency (2.7x tbv) and our channel checks of steady M&A dialogue in the Southwest Markets. We expect profitability improvement to 1.20%+ ROA with full integration of its recently closed Carlile acquisition. We believe the stock’s recent under-performance (-12% vs peers -2% over last 3 months) represents an attractive entry point for growth investors.”

According to TipRanks.com, Olney is a 4-star analyst with an average return of 9.0% and a 58.1% success rate. Olney covers the Financial sector, focusing on stocks such as First Financial Bankshares, Allegiance Bancshares Inc, and Texas Capital Bancshares.

Independent Bank Group has an analyst consensus of Moderate Buy, with a price target consensus of $71.

Based on Independent Bank Group’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $60.52 million and quarterly net profit of $15.47 million. In comparison, last year the company earned revenue of $55.9 million and had a net profit of $12.21 million.

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Independent Bank Group, Inc. operates as a bank holding company. It provides a wide range of relationship-driven commercial banking products and services tailored to meet the needs of businesses, professionals, and individual through its subsidiary, Independent Bank. Its services include checking, savings, commercial loans, business services, and cash management. The company was founded on September 20, 2002 and is headquartered in McKinney, TX.