Cantor Fitzgerald Lifts Cullen/Frost Bankers (CFR) Price Target, Sees Short-Term Pressure on Bank Stocks

Cullen/Frost Bankers, Inc. (NYSE:CFR) is included among the 14 Low PE High Dividend Stocks to Buy Right Now.

Cantor Fitzgerald Lifts Cullen/Frost Bankers (CFR) Price Target, Sees Short-Term Pressure on Bank Stocks

On March 3, Cantor Fitzgerald raised its price recommendation on Cullen/Frost Bankers, Inc. (NYSE:CFR) to $152 from $141. The firm kept a Neutral rating on the stock. The analyst said bank stocks went through a volatile week. Several issues weighed on the sector at the same time. These included renewed tariff concerns, the collapse of UK-based Market Financial Solutions, ongoing worries about AI-driven job losses, and a January PPI reading that came in above expectations. Taken together, these developments added to short-term uncertainty. Even so, Cantor said it remains optimistic about the sector heading into 2026, according to the firm’s research note.

During the company’s earnings call, management said it expects net interest income to grow roughly 3% to 5% in 2026. CFO Dan Geddes also pointed to a slight improvement in the bank’s net interest margin. He said the margin could increase by about 5 to 10 basis points compared with the full-year 2025 level of 3.66%. Loan growth is also expected to remain steady. The company projects average loan balances for the full year to rise between 5% and 7%.

Average deposits are expected to grow more slowly, likely increasing by around 2% to 3%. Management also expects noninterest income to climb about 4% to 5%. Noninterest expenses are projected to rise a bit faster, in the range of 5% to 6%. Geddes added that the bank expects full-year 2026 net charge-offs to come in between 20 and 25 basis points of average loans.

Cullen/Frost Bankers, Inc. (NYSE:CFR) is a U.S. bank holding company that offers a broad range of financial products and services across several markets in Texas.

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