Cullen/Frost price target raised to $116 from $110 at UBS

UBS raised the firm’s price target on Cullen/Frost to $116 from $110 and keeps a Neutral rating on the shares. The company’s 2024 balance sheet guidance seems conservative to the firm, but UBS sees potential downside risk to the net interest income guide if deposit betas lag on the way down. All in all, the firm thinks PPNR beats through 2024 will be less likely given the expense lift from the expansion efforts and potential for mild net interest income misses, and therefore sees limited near-term catalysts and remains on the sidelines.