Morgan Stanley upgrades Prosperity Bancshares to Equal Weight on risk/reward

Morgan Stanley upgraded Prosperity Bancshares to Equal Weight from Underweight with a price target of $69, up from $57. In the last three months, Prosperity shares have underperformed the median bank by 400 basis points, the analyst tells investors in a research note. The firm now views the stock’s risk/reward from here as more balanced. It sees 70 basis points of net interest margin expansion by the end of 2025 as loan growth accelerates and fixed-rate loan repricing comes through.