Cantor Fitzgerald cuts Cullen/Frost Bankers stock price target to $167

Cantor Fitzgerald recently adjusted its price target for Cullen/Frost Bankers (NYSE: CFR) to $167 from $175, while keeping its rating on the stock at Neutral. The current trading price of CFR stands at $151.56, which is below both the revised target and InvestingPro's estimated Fair Value of $191.93.

The downgrade in the price target is likely due to Cantor Fitzgerald reworking its financial model for the Texas-based bank holding company. Despite the reduction, the firm maintains an optimistic outlook by raising its fiscal year 2026 core earnings per share estimate to $11.20 from $11.05 and projecting a figure of $12.95 for fiscal year 2027, up from $12.20.

InvestingPro Tips indicate that 5 analysts have revised their earnings estimates upwards for the upcoming period, contributing to the overall positive sentiment. This upward revision is primarily attributed to increased core net interest income and a strengthening core net interest margin. However, the projections are tempered by lower core fee income and higher expenses.

The Neutral rating remains unchanged, despite the earnings estimate revisions, as Cantor Fitzgerald remains cautious amidst the financial model adjustments. The stock is currently trading at a P/E ratio of 14.32, positioning CFR as undervalued according to InvestingPro's analysis, which features comprehensive Pro Research Reports for CFR and over 1,400 other US equities.

Additionally, Cullen/Frost Bankers reported robust financial results for the second quarter of 2026, surpassing Wall Street expectations with earnings of $2.70 per share and revenue of $598.35 million. The company's net income rose by 9.7% year-over-year, reaching $170.4 million, while diluted earnings per share climbed by 13%. TD Cowen also raised its price target for CFR shares to $185 from $169, maintaining a Buy rating, citing stronger pre-tax pre-provision earnings and a positive outlook for the year, particularly in net interest income, fees, and expenses.