On Friday, Keefe, Bruyette & Woods (KBW) maintained a positive stance on South State Corporation (NYSE:SSB), reiterating an Outperform rating and a $135.00 price target. South State's stock was also selected as one of KBW's Best Ideas for the year 2025.
The endorsement from KBW comes with an expectation of significant growth for South State. Analysts at the firm project over 20% growth in pre-provision net revenue (PPNR) per share for the year 2025. Adjustments to earnings per share (EPS) estimates were made to reflect an earlier completion of the acquisition of Independent Bank (NASDAQ:INDB) of Texas (IBTX), which is now anticipated to close on January 1 rather than April 1.
The new estimates from KBW take into account its updated Economic Baseline, which removes two interest rate cuts previously expected in 2025. As a result, KBW has revised its fourth-quarter 2024 EPS estimate down to $1.82 from $1.92, its 2025 EPS estimate to $8.15 from $8.25, and its 2026 EPS estimate to $9.50 from $9.60.
"The earlier close and stronger growth helps offset the impact of fewer cuts, and we believe SSB remains one of the most compelling ways to buy the buyers and effective execution of the IBTX deal will drive the multiple higher over the course of 2025," the firm said.
The price target of $135.00 set by KBW is based on 14 times the projected 2026 earnings per share.
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