Prosperity Bancshares' analyst price target has been revised downward by $1.89 to $79.80. This adjustment reflects updated analyst models that factor in slightly improved revenue growth and profit margins, alongside a modest decrease in projected valuation multiples.
What's in the News
- Prosperity Bancshares, Inc. reported net charge-offs of $3.0 million for the second quarter ended June 30, 2025, a decrease from $4.4 million in the same period last year (Key Developments).
- No shares were repurchased from April 1, 2025 to June 30, 2025. There was no progress made under the buyback program announced on January 21, 2025 (Key Developments).
Valuation Changes
- Fair Value Estimate: Decreased from $81.69 to $79.80. This indicates a modest reduction in the projected intrinsic value of the company.
- Discount Rate: Slightly decreased from 6.95% to 6.94%, which reflects a marginally lower required return on equity.
- Revenue Growth: Increased from 11.04% to 11.51%. This signifies improved expectations for future top-line performance.
- Net Profit Margin: Edged up from 43.53% to 43.66%, indicating marginally stronger profitability forecasts.
- Future P/E Ratio: Declined from 12.84x to 12.34x. This suggests a slightly lower valuation multiple for the company’s future earnings.
Disclaimer
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