18 US bank stocks traded at least 20% below analyst price targets in October

Eighteen U.S. banks and thrifts were trading at least 20% below analysts' consensus one-year price targets at the end of October.

Fishers, Ind.-based First Internet Bancorp had the largest implied upside in the U.S. banking industry at 33.4% as of Oct. 29, the last trading day of the month, and all five analysts covering the stock gave it the equivalent of a "buy" recommendation. On Nov. 2, First Internet announced that it would acquire Roswell, Ga.-based First Century Bancorp. for $80 million, sending First Internet's shares charging 27% higher month-to-date as of Nov. 4.

Meanwhile, Troy, Mich.-based Flagstar Bancorp Inc. was trading 33.0% below its mean one-year price target, the second-largest discount in the banking industry. Flagstar's stock has produced a total return of 16.2% this year, and two out of four analysts covering the stock expect growth potential.

New York-based New York Community Bancorp Inc., which announced its acquisition of Flagstar Bancorp Inc. on April 26, was trading 24.2% below its mean one-year price target at the end of October and returned 23.1% over the first 10 months of the year.

On the other hand, eight companies were trading above analysts' one-year price targets up from five at the time of S&P Global Market Intelligence's last analysis at the end of July.

Abilene, Texas-based First Financial Bankshares Inc. was trading 8.1% above its consensus analyst price target, the largest premium of any bank in this analysis. The company's shares have gained 41.5% year to date, and none of the analysts covering the bank currently have a "buy" recommendation.

San Antonio, Texas-based Cullen/Frost Bankers Inc. and Warsaw, Ind.-based Lakeland Financial Corp. traded at the second- and third-largest premiums at 6.6% and 3.1%, respectively.