South Plains Financial’s latest valuation update keeps the fair value anchor steady at $46.75, while quietly reshaping the story behind how that number is built. The model now uses a slightly higher discount rate and refreshed revenue growth assumptions, influenced by both optimism and caution around the Bank of Houston deal and the push into larger Texas metro markets. Stay tuned to see how you can track these kinds of model shifts and keep up with the evolving narrative around this stock.
Raymond James lifted its South Plains Financial price target to $44 from $42 and kept an Outperform rating, pointing to the Bank of Houston transaction as a key pillar of the long term story.
Analysts at Raymond James highlight that the Bank of Houston deal supports South Plains Financial’s push into larger metro markets in Texas and brings in a team of relationship bankers that they view as additive to growth prospects.
Across recent research, there is an emphasis on South Plains Financial’s expansion into what analysts describe as an attractive and underpenetrated commercial banking market. They connect this to the company’s longer term growth profile and valuation case.
Piper Sandler and Keefe Bruyette both raised their price targets for South Plains Financial on the same day, which signals a generally supportive research backdrop even though full details of their commentary are not available.
🐻 Bearish Takeaways
The available research does not spell out explicit bearish arguments. However, the focus on long term growth potential and metro market expansion implies that some of the near term execution and integration risks around the Bank of Houston deal may be on investors’ minds even as analysts adjust price targets.
South Plains Financial, Inc. declared a quarterly cash dividend of $0.17 per share of common stock, a 6% increase from the most recent quarterly cash dividend declared in November 2025.
The dividend is payable on February 17, 2026 to shareholders of record as of the close of business on February 2, 2026. This sets a clear timeline for investors tracking the payout.
The company highlighted this dividend decision in its key developments, indicating that capital returns to shareholders remain an active part of its current narrative.
Fair Value remains unchanged at US$46.75, indicating that the updated inputs still point to the same central valuation anchor for the shares.
The Discount Rate has risen slightly from 6.96% to 6.98%, which modestly tightens the hurdle applied to the future cash flow stream in the model.
Revenue Growth has increased from 13.51% to 14.29%, reflecting a somewhat stronger outlook for dollar revenue expansion in the updated assumptions.
The Net Profit Margin has moved higher from 30.86% to 31.71%, indicating a small uplift in the expected dollars of earnings generated from each dollar of revenue.
The Future P/E has been reduced from 9.26x to 8.78x, pointing to a slightly more conservative valuation multiple used alongside the unchanged fair value estimate.
Narratives on Simply Wall St let you attach a clear story to the numbers, tying your view of a company’s future revenue, earnings, and margins to a fair value estimate. Each Narrative links the business story to a financial forecast, then to a fair value you can compare with the current share price, and it updates as news or earnings arrive. You will find these Narratives on the Community page, where millions of investors use them as an accessible way to decide whether a stock still fits their plan.
Head over to the Simply Wall St Community and follow the Narrative on South Plains Financial to stay on top of how this story is evolving:
How expansion into key Texas metro markets and the Bank of Houston integration fit into a balanced forward outlook for growth and risk.
What the current assumptions for revenue, earnings, margins and the implied P/E in 2028 suggest about the US$46.75 fair value anchor.
Which risks around loan growth, credit quality, expenses and regional concentration could challenge the Narrative if conditions change.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
