Stephens raised its price target on South State (NYSE:SSB) to $120.00 from $110.00 on Monday and left its rating at Overweight, pointing to outperformance in the bank’s core pre-provision net revenue and continued loan expansion as the primary drivers behind the move.
The regional bank has a market capitalization of nearly $10 billion and is trading at a price-to-earnings ratio of 12.73. That valuation places South State slightly below InvestingPro’s Fair Value estimate, according to the data cited in Stephens’ update.
Stephens highlighted a core PPNR of $323.5 million, a result that topped consensus by 1.5% or $0.03 per share. The firm attributed the beat to stronger net interest income and gains in correspondent banking and capital markets fees, although it noted that higher operating expenses partially offset those revenue gains.
On margins and interest income, South State reported a net interest income increase of 2.7% quarter-over-quarter when excluding purchase accounting adjustments. The bank’s core net interest margin rose by 2 basis points sequentially, and the reported net interest margin stood at 3.86%, a touch above consensus by 1 basis point.
Loan growth was another area of strength. South State’s end-of-period loan growth ran at an 8% annualized rate, well ahead of consensus expectations near 5.5%. Management has guided for continued mid-to-high single-digit loan growth going forward, a trajectory Stephens flagged as supportive of its bullish view.
Stephens also increased its 2026 PPNR estimate for South State by 1.5%. The firm cited several factors underpinning the revision and the Overweight rating: above-peer loan growth, differentiated fee income momentum, active capital return to shareholders, and what Stephens characterized as a superior return profile versus peers.
Other analyst activity and results have reinforced the positive tone around the stock. South State Corp reported fourth-quarter 2025 earnings-per-share of $2.47, ahead of the $2.10 forecast, representing a 17.62% surprise. Revenue for the quarter reached $686 million versus a $660.72 million forecast.
Those results were driven by robust growth in loans and deposits, which supported higher-than-anticipated net interest income. Raymond James responded to the quarterly results by raising its price target to $120 from $115 and maintaining a Strong Buy rating. Raymond James noted that the bank exceeded both its own forecasts and consensus on core earnings per share and pre-provision revenue. South State reported an 8% annualized increase in both loans and deposits for the period.
Other metrics reinforce the bank’s track record of shareholder returns: InvestingPro data cited in the analyst note shows South State has paid dividends for 30 consecutive years and delivered 11.11% dividend growth over the last twelve months.
Overall, Stephens’ upward revision to the price target and its nudging up of 2026 PPNR reflect a view that the bank’s recent operational trends - loan growth, fee income momentum and capital returns - support a stronger valuation and return outlook, while acknowledging expense pressures that partially offset results.