Cullen/Frost downgraded to Underperform from In Line at Evercore ISI

Evercore ISI downgraded Cullen/Frost to Underperform from In Line with a price target of $111, up from $98. The analyst believes limited expense flexibility, likely lofty loan growth expectations, and an outsized commercial real estate concentration “negatively tilt” the risk-to-reward on Cullen/Frost’s “premium” valuation. While the bank’s recent expansionary efforts have driven favorable balance sheet trends, a more pronounced pullback in loan demand through 2024 will limit the near-term profitability of ongoing investments, the analyst tells investors in a research note.