Raymond James raised the firm's price target on Carter Bankshares to $27 from $25 and keeps an Outperform rating on the shares. Carter Bankshares is positioned to shift to offense following the sale of its Justice nonperforming loans, which removes a longstanding drag on both operations and valuation, the analyst tells investors in a research note. With only a partial Q1 impact reflected, net interest margin and expenses are expected to improve meaningfully in Q2 as liquidity is redeployed into higher-yielding assets, while enhanced strategic flexibility and capital return potential support a more positive valuation outlook, the firm says.
