Raymond James Downgrades Prosperity Bancshares (PB) to Market Perform

Raymond James analyst Steve Moss downgraded Prosperity Bancshares (NYSE: PB) from Outperform to Market Perform.

The analyst comments "We are downgrading PB shares from Outperform to Market Perform as we now see shares as fairly valued in light of the solid performance of shares following 3Q25 results juxtaposed with still-challenged loan/balance sheet and NII growth expectations. To this end, we note that it cited contraction in loans HFI in 4Q25 at our recent Texas bank tour (link) which, in our view, will impact 4Q25/2026 NII growth forecasts. Moreover, we expect noise from recently-completed or pending acquisitions of American Bank Holdings (link, link) and Texas Partners (link) to weigh on relative performance in the nearer-term. Finally, we don’t see PB as a nearer-term seller which in our view limits the potential for multiple expansion from recent/ongoing M&A activity in/around its markets. That said, ongoing share repurchases, the potential for additional opportunistic/accretive M&A, and above-peer profitability are positives in our view rendering a balanced risk-reward dynamic."

For an analyst ratings summary and ratings history on Prosperity Bancshares click here. For more ratings news on Prosperity Bancshares click here.

Shares of Prosperity Bancshares closed at $70.96 yesterday.

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