
Prosperity Bancshares (PB) Stock Forecast & Price Target
Prosperity Bancshares (PB) Analyst Ratings
Bulls say
Prosperity Bancshares demonstrated a positive financial trajectory, with a reported net interest margin (NIM) increase of 6 basis points to 3.30%, aligning closely with forecasts. The bank's acquisition of Stellar contributed to net loan growth, highlighted by a 1.8% quarter-over-quarter increase in period-end loans to $7.301 billion, alongside a $1.5 million rise in fee income driven by higher 'other' fees. Additionally, despite a slight reduction in the tangible common equity (TCE) ratio, a solid common equity tier 1 (CET1) ratio of 17.55% reflects a strong capital position, supporting ongoing financial stability.
Bears say
Prosperity Bancshares's stock is facing a negative outlook due to a significant decline in loan growth, with period-end loans held for investment decreasing by $249 million quarter-over-quarter and showing a year-over-year decline of 2.7%. Negative pressures on net interest income, resulting from a competitive market environment impacting loan and deposit pricing, have further contributed to a lack of expansion in average earning assets and overall profitability. Additionally, the company's long-term performance has been hampered by a cumulative underperformance of approximately 23% over two years, which undermines its potential for successful mergers and acquisitions.
This aggregate rating is based on analysts' research of Prosperity Bancshares and is not a guaranteed prediction by Public.com or investment advice.
Prosperity Bancshares (PB) Analyst Forecast & Price Prediction
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