Royal Bank Of Canada Forecasts Strong Price Appreciation for Cullen/Frost Bankers (NYSE:CFR) Stock

Key Points

• Royal Bank of Canada raised its price target on Cullen/Frost to $155 (from $150) with a "sector perform" rating, implying roughly a 9.7% upside from the stock's current level.
• Q1 results beat expectations — $2.65 EPS vs. $2.49 consensus and revenue of $1.04B — and the board raised the quarterly dividend to $1.03.
• Despite the beat, shares fell about 2.5% to $141.29; analysts' consensus is a "Hold" with an average target of $142.67 and mixed individual ratings.

Cullen/Frost Bankers (NYSE:CFR - Get Free Report) had its price target hoisted by Royal Bank Of Canada from $150.00 to $155.00 in a report issued on Friday,Benzinga reports. The brokerage currently has a "sector perform" rating on the bank's stock. Royal Bank Of Canada's price objective would indicate a potential upside of 9.70% from the stock's current price.

Several other research firms have also commented on CFR. Morgan Stanley lowered their price target on Cullen/Frost Bankers from $143.00 to $133.00 and set an "underweight" rating for the company in a research report on Tuesday, March 31st. Barclays raised their price target on Cullen/Frost Bankers from $150.00 to $155.00 and gave the stock an "equal weight" rating in a research report on Tuesday, April 7th. Keefe, Bruyette & Woods raised their price target on Cullen/Frost Bankers from $150.00 to $160.00 and gave the stock an "outperform" rating in a research report on Friday, January 30th. Loop Capital set a $160.00 price target on Cullen/Frost Bankers in a research report on Monday, February 2nd. Finally, DA Davidson lifted their target price on Cullen/Frost Bankers from $136.00 to $144.00 and gave the company a "neutral" rating in a report on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $142.67.

Cullen/Frost Bankers Trading Down 2.5%

Shares of CFR traded down $3.64 during midday trading on Friday, hitting $141.29. 241,800 shares of the stock were exchanged, compared to its average volume of 545,600. Cullen/Frost Bankers has a 52-week low of $119.00 and a 52-week high of $148.97. The stock has a fifty day simple moving average of $138.96 and a 200 day simple moving average of $133.57. The firm has a market cap of $8.90 billion, a P/E ratio of 14.21, a P/E/G ratio of 3.95 and a beta of 0.61. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.67 and a current ratio of 0.67.

Cullen/Frost Bankers (NYSE:CFR - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The bank reported $2.65 EPS for the quarter, topping the consensus estimate of $2.49 by $0.16. Cullen/Frost Bankers had a return on equity of 15.49% and a net margin of 22.21%.The business had revenue of $1.04 billion during the quarter, compared to analyst estimates of $587.29 million. During the same period last year, the business posted $2.30 earnings per share. On average, research analysts anticipate that Cullen/Frost Bankers will post 10.21 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Kestra Advisory Services LLC raised its stake in Cullen/Frost Bankers by 45.5% in the first quarter. Kestra Advisory Services LLC now owns 4,018 shares of the bank's stock valued at $551,000 after buying an additional 1,256 shares in the last quarter. Granite Investment Partners LLC raised its stake in Cullen/Frost Bankers by 12.8% in the first quarter. Granite Investment Partners LLC now owns 2,909 shares of the bank's stock valued at $399,000 after buying an additional 330 shares in the last quarter. Greenwood Capital Associates LLC acquired a new stake in Cullen/Frost Bankers in the first quarter valued at $490,000. Oregon Public Employees Retirement Fund raised its stake in Cullen/Frost Bankers by 0.8% in the first quarter. Oregon Public Employees Retirement Fund now owns 12,921 shares of the bank's stock valued at $1,771,000 after buying an additional 100 shares in the last quarter. Finally, Burney Co. raised its stake in Cullen/Frost Bankers by 2.1% in the first quarter. Burney Co. now owns 6,219 shares of the bank's stock valued at $853,000 after buying an additional 125 shares in the last quarter. 86.90% of the stock is currently owned by hedge funds and other institutional investors.

Cullen/Frost Bankers News Roundup

Here are the key news stories impacting Cullen/Frost Bankers this week:

• Positive Sentiment: Q1 results beat expectations: CFR reported $2.65 EPS (vs. ~$2.49 consensus) and revenue of $1.04B, with net income and QoQ/YoY improvements highlighted in the release — evidence of healthy profitability and margin strength. Earnings Report
• Positive Sentiment: Dividend raised: the board increased the quarterly dividend to $1.03 (3.0% increase; ~2.8% yield annualized) — supports the stock as an income play and may attract yield-oriented investors. Dividend & Q1 Release
• Positive Sentiment: Included in dividend-hike roundup: analysts/media are flagging CFR among banks boosting payouts amid market volatility, which can increase investor visibility. Zacks Dividend Hikes Article
• Neutral Sentiment: Conference call logistics: the company rescheduled its earnings conference call and posted release materials — useful for investors wanting management commentary on results and outlook. Conference Call Notice
• Neutral Sentiment: Corporate governance items approved: shareholders backed directors, executive pay and auditors at the annual meeting — removes near-term governance uncertainty. Shareholder Meeting Update
• Negative Sentiment: Shares fell despite the beats — likely drivers include short-term profit-taking after recent gains, broader market/financials weakness, and the stock's modest yield vs. peers; investors may be waiting for management commentary on loan trends/asset quality before re-rating. See current price action and volume. CFR Price Page

Cullen/Frost Bankers Company Profile

Cullen/Frost Bankers, Inc is the holding company for Frost Bank, a Texas-chartered financial institution whose origins date back to 1868 in San Antonio. As one of the oldest banking organizations in the state, it offers a broad range of services to individuals, small and large businesses, and institutional clients. Core banking activities include commercial lending, deposit services, cash management and trade finance, while consumer products cover residential mortgages, personal lines of credit and home equity loans.

Beyond traditional banking, the company provides comprehensive treasury and equipment leasing solutions tailored to support working capital and capital expenditure requirements.

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