Ebrahim Poonawala, an analyst from Bank of America Securities, reiterated the Buy rating on Cullen/Frost Bankers. The associated price target is $163.00.
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Ebrahim Poonawala has given his Buy rating due to a combination of factors that highlight both recent performance and forward-looking potential. He notes that Cullen/Frost delivered quarterly earnings that exceeded expectations, driven by lower-than-anticipated credit costs thanks to an improving credit outlook, as well as stronger fee income from capital markets activity and a one-time real estate gain. On the back of these results, he raised his earnings estimates for 2026 and 2027, indicating increased confidence in the bank’s profit trajectory. He also emphasizes that the bank’s conservative underwriting and prudent risk management position it well to sustain earnings quality over the coming years.
At the same time, Poonawala views Cullen/Frost as a standout franchise with a differentiated growth profile anchored in its strong Texas footprint and brand, operating in some of the fastest-growing markets in the country. The planned acceleration of branch expansion, with more openings expected in 2026 than in the prior year, underpins his outlook for continued organic loan and deposit growth despite near-term pressures from multifamily CRE paydowns and a competitive deposit environment. He points to robust forecast returns on tangible equity as support for the current valuation, arguing that the risk/reward remains attractive even as the stock trades at a premium to smid-cap peers. Taken together, these factors justify his view that the shares offer meaningful upside from the current price level, supporting his Buy rating and price objective of $163.
In another report released on January 29, KBW also maintained a Buy rating on the stock with a $160.00 price target.
CFR’s price has also changed slightly for the past six months – from $134.040 to $137.820, which is a 2.82% increase.