DA Davidson raised its target price for Cullen/Frost Bankers (NYSE:CFR) to $144.00 from $136.00 on Friday, while retaining a Neutral rating on the shares. The regional bank has a market capitalization of $8.88 billion and currently trades at a price-to-earnings ratio of 13.91.
The broker's decision to lift the price target followed Cullen/Frost's robust fourth-quarter showing, which topped both DA Davidson's own projection and consensus expectations. DA Davidson noted that company management has outperformed consensus estimates in 26 of the past 28 quarters, a record the analyst firm highlighted as evidence of consistent operational delivery. Over the last twelve months, Cullen/Frost posted revenue growth of 9.02%.
Reflecting the stronger results and management's track record, DA Davidson raised its 2026 earnings-per-share forecast for the bank to $10.63, up from a prior estimate of $10.03. The firm pointed to valuation data from InvestingPro showing the stock trades at a relatively low P/E versus near-term earnings growth, with a price/earnings-to-growth ratio of 0.69.
DA Davidson also emphasized Cullen/Frost's competitive positioning. The analyst firm said the bank has continued to take market share from larger national banks and remains competitive when measured against more recent entrants in the regional banking sector. Despite these operational positives and the higher price target, DA Davidson left its rating at Neutral, explicitly citing valuation as the single factor preventing an upgrade.
In related company disclosures, Cullen/Frost Bankers Inc. reported fourth-quarter 2025 results that beat Wall Street forecasts. The company recorded earnings per share of $2.56, above the expected $2.45, and revenue of $603.38 million, exceeding the forecasted $578.07 million. These quarterly figures underscore the firm's recent streak of surpassing both earnings and revenue estimates and have been noted by analysts, though the coverage referenced no specific upgrades or downgrades following the report.
Investors have responded with increased optimism in light of the stronger-than-expected quarter and the revised forward earnings projection, while DA Davidson's neutral stance highlights that valuation considerations remain central to analysts' assessments.