Cullen/Frost Bankers stock price target raised to $147 by BofA

Investing.com - BofA Securities raised its price target on Cullen/Frost Bankers (NYSE:CFR) to $147.00 from $145.00 on Monday, while maintaining a Buy rating on the regional bank’s stock. The stock has shown impressive momentum with a 43.57% return over the past year, according to InvestingPro data.

The firm noted that Cullen/Frost has achieved 33% revenue growth from fiscal year 2022 to fiscal year 2025 as a result of significant franchise investments, though this has lagged behind the 37% expense growth during the same period. The bank, currently valued at $8.77 billion, has maintained consistent dividend payments for 33 consecutive years, as highlighted in InvestingPro’s analysis.

BofA Securities emphasized that investors will need to see benefits from the growth strategy translate into accelerating EPS growth and improved return on tangible common equity (ROTCE) and return on assets (ROA) outlook for fiscal years 2025-2027.

The bank currently trades at 2.0x fiscal year 2026 estimated price-to-tangible book value with a 15.5% ROTCE outlook, and 14.1x fiscal year 2026 estimated earnings per share compared to peer median of 10.4x, representing a premium valuation. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value, with a current P/E ratio of 15.03x and overall financial health score of FAIR.

BofA highlighted management’s statements about 2026 being a "payoff year" for the company’s investments, suggesting that market consensus might be underestimating the potential, with current estimates projecting 5% revenue growth and 6% expense growth for fiscal year 2026. The company’s current revenue growth stands at 5.45% over the last twelve months, with analysts predicting continued profitability this year.

In other recent news, Cullen/Frost Bankers has reported first-quarter earnings per share of $2.30, surpassing both BofA Securities’ estimate of $2.24 and the consensus of $2.18. The company also raised its full-year 2025 net interest income and fee income guidance, projecting growth of 5% to 7% year-over-year. BofA Securities responded by increasing its price target for Cullen/Frost to $145 and maintaining a Buy rating. Evercore ISI upgraded the stock from Underperform to In Line, raising the price target to $132, citing improved top-line forecasts and solid credit trends. Stephens also raised its price target to $141, highlighting stronger-than-expected revenue performance and an optimistic outlook for the year. Meanwhile, DA Davidson maintained a Neutral rating with a $135 price target, noting the company’s strong market position and strategic growth initiatives. Jefferies initiated coverage with an Underperform rating and a price target of $105, expressing concerns over the bank’s valuation and earnings growth prospects. These developments reflect a range of analyst perspectives on Cullen/Frost’s financial performance and future potential.

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