Barclays downgraded Prosperity Bancshares (PB) to Underweight from Equal Weight with a price target of $68, down from $75. The firm expects “skepticism” around the bank’s acquisition of Stellar Bancorp due to the long earn-back and the fact that Stellar was itself the product of a merger of equals that closed just over three years ago, the analyst tells investors in a research note. Barclays sees Prosperity’s roll-up strategy of smaller Texas-based banks weighing on its performance in the long term.
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