Update shared on 03 Dec 2025
Analysts have modestly raised their price target on Prosperity Bancshares to approximately $78.47 per share, reflecting slightly stronger expectations for revenue growth and profit margins, along with a marginally lower forward price-to-earnings multiple.
What's in the News
- Completed a share repurchase of 299,318 shares, about 0.31% of outstanding stock, for $19.94 million under the buyback program announced January 21, 2025 (company disclosure)
- Reported net charge offs of $6.5 million for the third quarter ended September 30, 2025, up from $3.0 million in the prior quarter and $5.5 million a year earlier (company disclosure)
- The Board of Directors increased the quarterly common dividend to $0.60 per share for the fourth quarter of 2025, a 3.45% rise from the prior quarter, payable January 2, 2026, to shareholders of record on December 15, 2025 (company disclosure)
Valuation Changes
- Fair Value Estimate remained unchanged at approximately $78.47 per share, indicating stable intrinsic value assumptions.
- Discount Rate edged down slightly from 6.96 percent to 6.96 percent, reflecting a marginally lower required return.
- Revenue Growth Forecast has risen modestly from about 12.51 percent to 13.17 percent, suggesting somewhat stronger top line expectations.
- Net Profit Margin Outlook increased slightly from roughly 40.81 percent to 41.62 percent, implying improved profitability assumptions.
- Future P/E Multiple has declined moderately from about 12.53x to 12.07x, indicating a slightly lower valuation multiple applied to forward earnings.
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