Cullen/Frost price target lowered to $123 from $155 at JPMorgan

JPMorgan analyst Steven Alexopoulos lowered the firm’s price target on Cullen/Frost to $123 from $155 and keeps an Overweight rating on the shares. The analyst tells investors to enter the Q1 earnings season with a fairly limited exposure to regional bank stocks. When considering the elevated cost of equity for the regional banks in the aftermath of several banks seeing a digital deposit run, combined with the potential for negative earnings revisions as deposit costs as well as credit costs move materially higher, JPMorgan is much more in the "fear" camp than "greed" camp at current valuations, the analyst tells investors in a research note.