TSC Ratings' Updates: Texas Capital Bancshares

The following ratings' changes were generated on September 26.

Texas Capital Bancshares(TCBI Quote) has been upgraded from hold to buy. Texas Capital Bancshares, Inc. operates as the holding company for Texas Capital Bank, National Association that provides various banking and financial services for middle market commercial and high net worth customers in Texas. It primarily engages in generating deposits and originating loans. The company's strengths can be seen in multiple areas, such as its expanding profit margins and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

The gross profit margin for TCBI is rather high; currently it is at 53.90%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 8.50% trails the industry average. ...