Stephens upgrades Prosperity Bancshares to 'overweight'

Prosperity Bancshares

26/06/2024 18:32

** Stephens upgrades regional bank Prosperity Bancshares
 PB.N  to "overweight" rating from "equal-weight"
    ** Brokerage sees 4 basis points (bps) of core net interest
margin (NIM) expansion for PB in Q2 
    ** NIM is a key measure of a bank's profitability
    ** Adds that it expects the acquisition of West
Texas-focused Lone Star State Bancshares to represent 5 bps
benefit to PB's NIM
    ** In April, PB completed the acquisition of Lone Star  
    ** Stephens expects additional core NIM tailwinds for PB in
H2 2024 and early 2025 due to pay downs of higher cost
borrowings
    ** Ten of 16 brokerages rate the stock "buy" or higher, five
"hold" and one "sell"; their median PT is $72 - LSEG
    ** Stock down 12.8% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))