Piper Sandler initiated coverage of Third Coast Bancshares Inc (NASDAQ: TCBX) with an overweight recommendation and a $53 price target, according to a note published on Thursday.
The brokerage cited the regional bank’s second-quarter performance as a key driver of its bullish stance. Third Coast reported diluted earnings per share of $1.08, exceeding the $0.90 estimate, while revenue reached $67.99 million against a $62.75 million forecast. Net interest margin expanded to 3.83%, surpassing the company’s post-merger target of 3.75%. The efficiency ratio improved to 56.5% from 66.1% in the prior quarter, reflecting operational gains.
Loan growth totaled approximately $185 million, with deposits rising by $140.4 million, including a significant increase in non-interest-bearing balances. The bank’s return on assets stood at 1.27% over the trailing twelve months, while return on equity reached 12%, aligning with Piper Sandler’s projections.
The stock currently trades at $44.34, implying a price-to-earnings ratio of 11.01 and a PEG ratio of 0.47. Piper Sandler estimates Third Coast’s tangible book value per share at roughly 1.4 times, with a 2027 consensus earnings multiple of about 10x. The firm projects tangible book value growth of around 14% by 2027.
