UBS analyst Brody Preston initiated coverage of Cullen/Frost with a Sell rating and $107 price target. The analyst states that the firm’s earnings estimates for FY23 and FY24 are below consensus on a more pessimistic view on funding, modeling for lower deposit growth and higher borrowings than expected. UBS also sees a lower level on Fed Funds than is baked into consensus, reaching 3% by the end of 2024, which should pressure Cullen/Frost’s net interest income.
Published first on TheFly
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