Prosperity Bancshares

PB · NYSE

$68.25+$1.01 (+1.50%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $67.24

PB analyst rating

HoldConsensus of 12 analysts over the last 12 months. 33% rate it a buy.

Strong buy0
Buy4
Hold6
Underperform2
Sell0

12-month price target · 16 analysts

Average $82.70 (+21.2% upside)

Low: $68.68
Now: $68.25
High: $89.25

Upgrades and downgrades

The latest rating actions, newest first

PB analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Cantor Fitzgerald	Oct 14, 2026	Maintains	Overweight	$85.00 → $78.00	54%
RBC Capital	Oct 9, 2026	Maintains	Sector Perform	$80.00 → $77.00	30%
Raymond James	Oct 6, 2026	Upgrade	Market Perform → Outperform	$78.00	61%
Barclays	Oct 5, 2026	Maintains	Underweight	$68.00 → $70.00	54%
TD Cowen	Oct 5, 2026	Maintains	Buy	$84.00 → $78.00	47%
Morgan Stanley	Sep 28, 2026	Maintains	Underweight	$80.00 → $81.00	59%
Citigroup	Sep 22, 2026	Maintains	Neutral	$79.00 → $77.00	40%
Morgan Stanley	Sep 8, 2026	Downgrade	Equal-Weight → Underweight	$80.00	59%
Citigroup	Jul 31, 2026	Maintains	Neutral	$75.00 → $79.00	40%
TD Cowen	Jul 31, 2026	Maintains	Buy	$82.00 → $84.00	47%

The case for and against

Updated Oct 14, 2026

Bull case

Prosperity Bancshares is supported by a disciplined, conservative banking model that has historically produced solid returns while limiting credit risk, and its Texas and Oklahoma footprint benefits from stronger regional growth dynamics than many U.S. markets. The pending STEL acquisition adds a more attractive earnings and growth engine, with stronger 1Q26 results, a 4.24% NIM at STEL, and expected combined NIM expansion for Prosperity to 3.72% in 4Q2026 and 3.85% in FY2027. Even with near-term organic loan growth muted, the company can still drive EPS through opportunistic buybacks, cost saves, and strong capital generation, including roughly $500-600M of annual pre-dividend earnings power.

Bear case

Prosperity Bancshares is facing a negative fundamental setup because credit quality has deteriorated, with $41.3M of net charge-offs in 1Q26, the largest in company history, alongside recurring problem loans from idiosyncratic middle-market and sponsor-backed credits. Organic loan growth remains a major weakness, as excluding acquired loans it was down about 6% quarter over quarter in 1Q26, and management expects overall growth to be only flat year over year because competition is fierce and runoff offsets acquisitions. While liquidity and deposit costs appear manageable, the bank’s willingness to pursue capital-dilutive deals, plus sensitivity to a faster decline in rates, could pressure tangible book value growth and earnings power, limiting enthusiasm for the shares.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.