Oppenheimer Maintains an 'Underperform' on Prosperity Bancshares (PB); Outlook Confirms Risk to Future EPS
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Price: $64.13 -1.46%
Rating Summary:
12 Buy, 7 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
12 Buy, 7 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Oppenheimer maintains an 'Underperform' on Prosperity Bancshares (NYSE: PB).
Analyst, Terry McEvoy, said, "A risk-adverse credit culture, the healthy Texas economy and accretive acquisitions enabled Prosperity to report record EPS in recent years while most banks were struggling with profitability. The current rate environment and competitive lending market should remain a challenge for Prosperity's NIM-dependent operating model as evident by the 9bps Q/Q compression in the NIM during the second quarter. With the stock trading at ~13.0x our FY13 EPS estimate and 2.8x tangible book value, we feel consensus estimates are too high and believe the stock is overvalued today."
FY12 EPS estimate raised from $3.02 to $3.15 and FY13 from $3.05 to $3.15.
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 $40.43 yesterday.
Analyst, Terry McEvoy, said, "A risk-adverse credit culture, the healthy Texas economy and accretive acquisitions enabled Prosperity to report record EPS in recent years while most banks were struggling with profitability. The current rate environment and competitive lending market should remain a challenge for Prosperity's NIM-dependent operating model as evident by the 9bps Q/Q compression in the NIM during the second quarter. With the stock trading at ~13.0x our FY13 EPS estimate and 2.8x tangible book value, we feel consensus estimates are too high and believe the stock is overvalued today."
FY12 EPS estimate raised from $3.02 to $3.15 and FY13 from $3.05 to $3.15.
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 $40.43 yesterday.
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