UPDATE: Oppenheimer Upgrades Prosperity Bancshares on Rising Interest Rates

In a report published on Monday, Oppenheimer analyst Terry McEvoy upgraded Prosperity Bancshares (NYSE: PB) from Underperform to Perform.

In the report, Oppenheimer stated, "Our prior earnings concerns were based on both core NIM pressure from low rates and the uncertainty of purchase accounting accretion. The increase in rates and the recently announced acquisition of privately-held First Victoria National Bank (FVNB) are a positive to future earnings and we are raising our estimates. Shares of PB are now fairly valued at 3.3x tangible book value and 15.7x our '14 EPS estimate though we still see declining purchase accounting accretion as being a risk to the stock."

Prosperity Bancshares closed on Monday at $56.84.