How Investors Are Reacting To Cullen/Frost Bankers (CFR) Upgraded Net Interest Income Guidance and Share Buyback

• Cullen/Frost Bankers recently reported strong third-quarter results, including a rise in net interest income to US$441.62 million and net income of US$174.38 million, while also increasing its 2025 full-year net interest income growth guidance to a range of 7% to 8% and completing a share repurchase program.
• Alongside affirming dividends on both preferred and common stock, the company reported lower net charge-offs compared to the prior year, reflecting ongoing efforts in credit discipline.
• Next, we'll examine how the company's upgraded earnings outlook supports its investment narrative and long-term profitability outlook.

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Cullen/Frost Bankers Investment Narrative Recap

To be a shareholder in Cullen/Frost Bankers, you need to believe in the continued economic and population momentum across Texas, supporting profitable growth in the bank’s core markets, while trusting management’s commitment to credit discipline and careful expense control. The company’s upgraded 2025 net interest income outlook is a positive near-term catalyst, yet does not fully offset risks around regional economic shocks or higher funding costs, which remain material and relevant for potential investors.

Among recent announcements, the company’s completion of a US$69.26 million share repurchase program stands out. This action reinforces management’s confidence following improved net income and net interest income, while showcasing a willingness to return capital to shareholders, an important aspect given the ongoing pressure from rising deposit costs and elevated expense growth.

In contrast, underlying sensitivity to regional economic conditions and potential credit risks is still something investors should be aware of, especially if...

Read the full narrative on Cullen/Frost Bankers (it's free!)

Cullen/Frost Bankers is projected to reach $2.4 billion in revenue and $596.4 million in earnings by 2028. This forecast assumes annual revenue growth of 4.6%, but earnings are expected to slightly decrease by $0.3 million from the current earnings of $596.7 million.

Uncover how Cullen/Frost Bankers' forecasts yield a $137.47 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Four community members at Simply Wall St have published fair value estimates for Cullen/Frost Bankers ranging from US$119.12 to a striking US$101,835.18 per share. While these opinions differ sharply, rising net interest income and regional loan growth could significantly affect future outcomes, explore more community viewpoints to see how your own outlook compares.

Explore 4 other fair value estimates on Cullen/Frost Bankers - why the stock might be a potential multi-bagger!

Build Your Own Cullen/Frost Bankers Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cullen/Frost Bankers research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Cullen/Frost Bankers research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cullen/Frost Bankers' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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