Wedbush Downgrades Cullen/Frost Bankers (CFR) to Underperform

November 17, 2016 7:12 AM EST
Get Alerts CFR Hot Sheet
Price: $87.37 +0.85%

Rating Summary:
    3 Buy, 14 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Wedbush downgraded Cullen/Frost Bankers (NYSE: CFR) from Neutral to Underperform with a price target of $78.00 (from $72.00) on valuation.

Analyst Peter Winter commented, "We are downgrading CFR to UNDERPERFORM from NEUTRAL based on valuation as fundamentals remain decent and the company should incrementally benefit from Trump tailwinds, including potentially higher interest rates and improved loan growth. However, despite being in position to benefit from the Trump tailwinds, we expect CFR’s EPS to benefit less than the other Texas banks when we conducted a pro forma EPS analysis that incorporates potential benefits. In particular, given CFR’s already low tax rate we do not expect significant improvement if the corporate tax rate were to actually decline to 15% as Trump has outlined as its tax rate is already very low at 12%. We believe the company’s valuation more than fully reflects the potential benefits of Trump’s policies and the improvement in energy credits."

For an analyst ratings summary and ratings history on Cullen/Frost Bankers click here. For more ratings news on Cullen/Frost Bankers click here.

Shares of Cullen/Frost Bankers closed at $82.93 yesterday.

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