UPDATE: Wunderlich Securities Reiterates On Cullen/Frost Bankers As Management Guides Consensus Higher

In a report published Thursday, Wunderlich Securities analyst Kevin Reynolds reiterated a Hold rating on Cullen/Frost Bankers (NYSE: CFR), and raised the price target from $72.00 to $80.00.

In the report, Wunderlich Securities noted, “We maintain our Hold rating on shares of Cullen/Frost Bankers, Inc. (CFR) but we are raising our price target by $8 to $80 after the company reported 2Q14 operating results that were well ahead of consensus expectations. 2Q14 results included strong loan and deposit growth, modest NIM expansion and better than expected fee income & expenses, leading to a sequential decline in the core efficiency ratio to 57.2% (vs. 59.1% in 1Q14). Additionally, management guided 2014 consensus to the high-end of the prevailing range, excluding merger related expenses. As the premier commercial lender in Texas, Frost is well positioned for above-average long-term growth. However, much of this future growth is already reflected in the current price, hence our Hold rating.”

Cullen/Frost Bankers closed on Wednesday at $79.40.