Prosperity Bancshares price target lowered to $65 from $70 at Raymond James

Raymond James lowered the firm’s price target on Prosperity Bancshares to $65 from $70 and keeps an Outperform rating on the shares. The analyst adjusted estimates for banks ahead of the Q2 results, saying net interest margin pressure is likely to be greater than most expect. The “honeymoon” period of the tightening cycle, in which assets reprice higher while liabilities repricing lags, has come to an end, the analyst tells investors in a research note. The firm expects funding cost pressures will persist longer than most expect.