Citi upgrades South State to 'buy' on margin expansion

SouthState Bank

27/01/2025 19:33

** Citi Research upgrades regional U.S. bank South State
 SSB.N  to "buy" from "neutral", raises PT to $128 from $106
    ** Brokerage notes that the closure of the Independent Bank
Group deal and net interest margin expansion as key factors
driving profitability
    ** SSB had agreed to acquire Texas-based Independent Bank
Group in an all-stock $2 billion  deal in May
    ** The biggest driver to our 2025/26 outlook was the
combination of a stronger than expected NIM backdrop from 4Q24
(both loan and deposit pricing), coupled with a likely
securities repositioning - brokerage
    ** The new price target represents a 23.5% upside to the
stock's last close
    ** 6 of 9 brokerages rate the stock "buy" or higher, and 3
"hold"; their median PT is $125 - LSEG data
    ** In 2024, the stock rose 17.8%

 (Reporting by Ateev Bhandari in Bengaluru)
 ((Ateev.Bhandari@thomsonreuters.com;))