Prosperity Bancshares price target lowered to $77 from $84 at Piper Sandler

Piper Sandler analyst Stephen Scouten lowered the firm’s price target on Prosperity Bancshares (PB) to $77 from $84 and keeps an Overweight rating on the shares. Even with the recent big move, Prosperity has underperformed by about 13% year-to-date. The firm believes this has come given the lack of organic loan growth that has slowed the net interest income expansion story and EPS growth, while the underperforming shares have also made the bank’s ability to get attractive M&A done, far less feasible. Thankfully, Prosperity is armed with ample reserves and a war chest of excess capital, adds Piper.