Trump announces trade deal with EU following months of negotiations
Investing.com - Jefferies lowered its price target on Prosperity Bancshares (NYSE:PB) to $85.00 from $90.00 on Wednesday, while maintaining a Buy rating on the stock. According to InvestingPro data, the bank currently trades at $69.53 with a P/E ratio of 13.4, suggesting potential upside from current levels.
The price target reduction follows Prosperity Bancshares’ second-quarter 2025 results, which Jefferies described as "mostly in-line" with expectations but with several notable variations from estimates. The $6.64 billion market cap bank has maintained strong fundamentals, with revenue growing 11.62% over the last twelve months. InvestingPro analysis shows the bank has raised its dividend for 17 consecutive years, currently offering a 3.18% yield.
Core loan growth came in flat compared to Jefferies’ previous estimate of 4% annualized growth, resulting in lower net interest income growth of 4% annualized versus the firm’s prior estimate of 15% annualized.
These shortfalls were partially offset by better-than-anticipated core fee income and what Jefferies characterized as "disciplined expense management" during the quarter.
Jefferies also noted that Prosperity Bancshares remains open to additional merger and acquisition opportunities while awaiting regulatory approval for its recently announced American Bank (TX) deal.
In other recent news, Prosperity Bancshares reported its Q2 2025 earnings, slightly surpassing earnings per share (EPS) estimates with a figure of $1.42 compared to the forecasted $1.41. However, the company’s revenue did not meet expectations, coming in at $310.7 million, below the anticipated $314.98 million. These results represent a mixed financial performance for the quarter. Despite the revenue shortfall, the earnings surprise indicates some positive momentum. Analysts and investors will likely keep a close watch on future developments. This earnings report is part of the recent developments surrounding Prosperity Bancshares.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.