Hovde Group downgrades Prosperity Bancshares on growth concerns

Prosperity Bancshares

26/11/2025 17:59

** Hovde Group downgrades U.S. regional lender Prosperity Bancshares PB.N to "market perform" from "outperform"

** Also trims PT to $75 from $80, which is still a 8.1% upside to stock's last close

** Brokerage cites soft organic growth, risk of loan reductions from pending acquisitions and management succession uncertainty

** Loss of PB's historical premium valuation also limits ability to compete for deals, brokerage says, adding that it expects limited outperformance near-term

** Still, Hovde says ratings change could be premature or wrong as PB has a very valuable low-cost deposit franchise in Texas — a hot market for banking M&A — and could itself be a potential acquisition target

** 9 of 16 brokerages rate the stock "buy" or higher and 7 hold; their median PT is $77 — data compiled by LSEG

** As of last close, PB down 8% YTD

 (Reporting by Pragyan Kalita in Bengaluru)

 ((Pragyan.Kalita@thomsonreuters.com))