J.P. Morgan Raises PT To $64 On CFR

J.P. Morgan has raised its price target on Cullen/Frost Bankers CFR from $63 to $64, following a conference call with CEO Dick Evans. In the report, J.P. Morgan writes, “On the conference call, CEO Dick Evans pointed out that with competitors sitting on excess capital as well as liquidity, Frost was already seeing competitors sacrificing on terms as well as rates to win the little business out there today. Although this didn't seem to be a factor that contributed to period-end loan balances declining in the first quarter at CFR, management was sending a clear message to its shareholders that Frost had no plans to compromise underwriting standards to win business in what is shaping up to be a very competitive market for loans. Given that Frost has a long track record of being one of the most prudent banks in the industry, combined with an increasingly competitive market for loans, we think Frost telegraphed to shareholders that it may likely sit out the first round of loan growth returning to the industry.” J.P. Morgan maintains its Neutral rating on CFR. CFR closed yesterday at $59.50.