UPDATE: Morgan Stanley Raising Price Target On Texas Capital Bancshares

Morgan Keegan is raising its price target on Texas Capital Bancshares, Inc. TCBI to $32 from $29, and it has an Outperform rating after earnings. In a note to clients, Morgan Keegan writes, "TCBI reported 2Q11 EPS of $0.44, handily beating our $0.37 and consensus $0.36 estimates. The beat was driven by higher net interest income which rose 10% LQ (spread income constitutes 90% of revenues), as the NIM expanded 40 bps sequentially to 4.86% benefiting from higher asset yields (+10 bp) and lower funding costs (-15 bp). The NIM also saw a 10bp benefit from recapture of NII on NPLs." Shares of TCBI are up $1.06 in pre-market trading to $27.96, a gain of 3.94%.