Cullen/frost Bankers Stock Intrinsic Value – Morgan Stanley Lowers Cullen/Frost Bankers Target Price to $116.00
July 12, 2023
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CULLEN/FROST ($NYSE:CFR): Cullen/Frost Bankers, Inc. is a financial holding company headquartered in San Antonio, Texas. On Friday, Morgan Stanley issued a research note in which they reduced their target price for Cullen/Frost Bankers from $121.00 to $116.00. This announcement sent the company’s shares lower in pre-market trading. Analysts at Morgan Stanley cited the potential for slower loan growth and increasing deposit costs as reasons for lowering the target price.
Despite this, they maintained their “Equalweight” rating for the stock, indicating that the company’s performance may still remain stable over the long term. This is in contrast to competitors like BB&T Corporation, who recently saw their stock fall due to a significant earnings miss. Overall, while Morgan Stanley’s revised target price may put some pressure on Cullen/Frost Bankers’ stock price in the short-term, the company’s strong fundamentals suggest that it should remain a safe investment over the long term.
Stock Price
On Monday, the stock opened at $106.7 and closed at $108.9, representing a 1.2% increase from its prior closing price of $107.6. This move follows a broader market trend of lower stock prices among financial services firms, although CULLEN/FROST BANKERS has managed to remain relatively steady in comparison to its peers. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cullen/frost Bankers. More…
| Total Revenues | Net Income | Net Margin |
| – | 650.07 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cullen/frost Bankers. More…
| Operations | Investing | Financing |
| 558.1 | -5.67k | -46.49 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cullen/frost Bankers. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 51.25k | 47.78k | – |
Key Ratios Snapshot
Some of the financial key ratios for Cullen/frost Bankers are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.4% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – Cullen/frost Bankers Stock Intrinsic Value
We at GoodWhale have conducted an analysis of CULLEN/FROST BANKERS and found that its intrinsic value is around $142.2. This calculation was made using our proprietary Valuation Line. Currently, CULLEN/FROST BANKERS stock is traded at $108.9, which means it is undervalued by 23.4%. This provides a great opportunity for investors to purchase CULLEN/FROST BANKERS shares at a discounted price and benefit from the potential upside when the stock reaches its true value. More…
Peers
Cullen/Frost Bankers Inc faces stiff competition from its rivals South Plains Financial Inc, Amfin Financial Corp, and Financial Institutions Inc. Each of these companies offer similar services and products, making it difficult for Cullen/Frost to differentiate itself in the market. The competitive landscape is ever-changing, and Cullen/Frost must stay on its toes in order to stay competitive.
– South Plains Financial Inc ($NASDAQ:SPFI)
South Plains Financial Inc is a bank holding company based in Lubbock, Texas, with a market cap of 502.01M as of 2022. The company provides a range of banking and financial services to small businesses, agricultural producers, retail customers, and others through its subsidiaries, South Plains Financial, Inc. and South Plains Bank N.A. South Plains Financial offers a wide range of products and services such as deposit accounts, loan products, trust services, wealth management services, and more. The company is committed to providing quality products and solutions that meet the needs of its customers and stakeholders.
– Amfin Financial Corp ($OTCPK:AFNL)
Financial Institutions Inc. has a market cap of $373.71M as of 2022. The company operates a regional financial services network of community banks and credit unions, providing a wide range of services including retail, commercial and corporate banking, investments and insurance, payment processing, and more. Financial Institutions Inc. is committed to helping its customers succeed by providing them with the best-in-class financial solutions and services. With a strong focus on customer service, Financial Institutions Inc. is well-positioned to become a leader in the financial services industry.
Summary
Cullen/Frost Bankers, Inc. has recently been the subject of an investing analysis by Morgan Stanley. The analysis concluded with a lowered target price of $116.00, representing a decrease from the previous target of $121.00. This latest investment report details various insights and assessments regarding the company’s financial performance and prospects. Wall Street analysts have noted that Cullen/Frost Bankers has strong balance sheets and good capital management, but they still see some potential risks in its loan portfolio.
Furthermore, they have recommended close monitoring of customer deposits as they may be vulnerable to changes in the economy or new strategies of competitors. Investors should continue to review all available information when assessing the company’s value.
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