PB - Prosperity Bancshares: Let It Fall

• This bank, along with many others, offers sizable upside in the next three to five years as the industry resets itself.
• The merger with LegacyTexas Bank has brought in many new loans and deposits to the balance sheet, though these metrics grew independent of the merger.
• Watch the oil and gas exposure, but mixed asset quality metrics did not reveal any outstanding red flags.
• We believe PB stock would be a good buy in the mid to high $50 range, given the expensive valuation.

For further details see: