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On Monday, DA Davidson analyst Peter Winter maintained a Neutral rating on Cullen/Frost Bankers (NYSE: NYSE:CFR) with a price target of $135.00, aligning with the broader analyst consensus target range of $109-$145. Trading at a P/E ratio of 14.3x, InvestingPro analysis indicates the stock is currently fairly valued. Winter highlighted the company’s potential to gain market share, attributing this to its branch expansion strategy and robust calling efforts. He praised Cullen/Frost as one of the top organic growth firms he covers.
Under the direction of CEO Phil Green, Cullen/Frost has demonstrated a commitment to investing in long-term growth rather than prioritizing short-term earnings or following transient banking trends. This strategy has yielded impressive results, with the company maintaining 32 consecutive years of dividend increases and achieving a solid 5.45% revenue growth in the last twelve months. Winter noted Green’s approach as a key driver for the bank’s strategic direction.
Despite concerns about the impact of tariffs on the economy, Cullen/Frost’s management has not observed any significant effects on the Texas economy to date. The analyst’s decision to maintain a Neutral rating is based strictly on the bank’s current valuation and is not influenced by the company’s operational performance or market strategy.
Winter’s comments come as Cullen/Frost continues to execute its expansion and growth initiatives. The $135.00 price target set by DA Davidson suggests that while the analyst sees value in the bank’s activities and leadership, the stock’s current price adequately reflects its market position and future potential.
Cullen/Frost Bankers, Inc., headquartered in San Antonio, Texas, operates as the holding company for Frost Bank, which offers commercial and consumer banking services primarily in Texas. The company’s shares are traded on the New York Stock Exchange under the ticker symbol CFR.
In other recent news, Cullen/Frost Bankers reported a strong first-quarter performance for 2025, with earnings per share (EPS) of $2.30, surpassing analyst expectations. The bank also increased its full-year 2025 net interest income guidance, projecting a 5% to 7% year-over-year growth. Following these results, BofA Securities raised its price target for Cullen/Frost to $145 and maintained a Buy rating. Evercore ISI upgraded the stock from Underperform to In Line, increasing the price target to $132, citing improved top-line forecasts and solid credit trends. Stephens also raised its price target to $141, maintaining an Equal Weight rating, highlighting stronger-than-expected revenue performance. Meanwhile, DA Davidson increased its price target to $135, keeping a Neutral rating, noting the bank’s consistent performance and strategic branch expansion. In contrast, Citi lowered its price target to $109, maintaining a Sell rating, due to concerns about the bank’s operational efforts and growth strategy impacting earnings. These developments reflect a diverse range of analyst perspectives on Cullen/Frost Bankers’ financial outlook.
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