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CFR: Net Interest Income Outlook And Buybacks Will Support Steady Returns

CFR: Net Profit Margin Improvement Will Drive Upside As Expansion Accelerates

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CFR
AnalystConsensusTarget
Not Invested
Published 28 Aug 2024

Update shared on 15 Dec 2025

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-7.3%
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2.9%

Analysts have nudged their price target for Cullen/Frost Bankers slightly higher to reflect a modestly lower discount rate and a marginally improved long term profit margin outlook, which together support a fair value estimate near $138 per share.

What's in the News

  • Cullen/Frost Bankers raised its 2025 net interest income growth guidance to a range of 7% to 8%, up from its prior outlook of 6% to 7% (company guidance).
  • The bank reported unaudited third quarter 2025 net charge offs of $6.6 million, down from $9.6 million in the same period a year earlier (company filing).
  • From July 1 to September 30, 2025, the company repurchased 549,228 shares, or about 0.85% of shares outstanding, completing a $69.26 million buyback program announced on January 30, 2025 (company announcement).

Valuation Changes

  • Fair Value Estimate remains unchanged at approximately $138 per share, indicating no revision to the intrinsic value assessment.
  • The Discount Rate has fallen slightly from about 7.29% to 7.27%, modestly increasing the present value of future cash flows.
  • Revenue Growth is effectively unchanged at roughly 4.0% annually, suggesting a stable outlook for top line expansion.
  • Net Profit Margin has risen slightly from about 24.7% to 24.8%, reflecting a marginally more optimistic long term profitability view.
  • Future P/E has edged down slightly from about 18.0x to 17.9x, implying a marginally lower valuation multiple on projected earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.