MSBI - Cullen/Frost Bankers upped to Outperform at Raymond James on solid growth prospects

Raymond James analyst Michael Rose has upgraded shares of Texas-based Cullen/Frost Bankers (CFR) to Outperform from Market Perform on the basis of solid growth prospects, according to a note written to clients Wednesday.  Rose also sees upside to the regional bank's net interest margin forecast given "its above-peer C&I composition, investment of its notably high excess cash position vs. history into higher-yielding securities as rates rise, above-peer concentration of noninterest-bearing deposits, and what we see as understated rate sensitivity where it assumes a 50% interest-bearing deposit beta vs. 28% in the prior tightening cycle," the note read. Seeking Alpha's Profitability Grade for CFR's net income margin stands at B- and slightly above the sector median.  For some defensive characteristics, the analyst sees strong credit performance due to conservative underwriting, as well as a solid capital position.  On the flip side, Rose has downgraded Banc of California (NYSE:BANC) to Market Perform

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Cullen/Frost Bankers upped to Outperform at Raymond James on solid growth prospects