UPDATE: Wunderlich Raising Its Price Target On Texas Capital BancShares

Wunderlich Securities is out Texas Capital BancShares, Inc. TCBI and is raising its price target to $29, and it has a Hold rating on shares. In a note to clients, Wunderlich Securities writes, "We maintain our Hold rating on shares of Texas Capital although we are raising our price target by $4 to $29. TCBI reported very strong 2Q11 results that easily exceeded expectations. Inside the numbers, loan growth was spectacular (+55% LQA) and the NIM expanded 40 bps sequentially, leading to top-line growth of 38% LQA. Our upwardly revised $29 price target values TCBI at 1.7 times 2012 projected TBV/share and 16.0 times 2012E EPS, both of which reflect a slight premium to Southern peers. Although we are attracted to the long-term growth story of TCBI, we believe there is insufficient upside at current levels to warrant a Buy recommendation at this time." Shares of TCBI are up $1.10 in pre-market trading to $28.00.