In the first quarter, Prosperity Bank (PB, Financial) reported notable financial improvements, showcasing a robust performance compared to the same period last year. The tangible book value per share was reported at $41.48, underscoring the bank's stable financial footing. Furthermore, the bank achieved a Common Equity Tier 1 (CET1) capital ratio of 16.97%, reflecting strong capital adequacy.
The bank also reported a net charge-off rate of only 0.05%, emphasizing effective credit risk management. Prosperity Bank experienced a 17.9% rise in net income and a 16.1% increase in earnings per share, showcasing solid growth from the first quarter of 2024. The senior chairman and CEO, David Zalman, expressed confidence in the bank's trajectory, noting the ongoing improvements in net interest margin due to higher asset repricing, a trend anticipated to persist in the coming years.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Prosperity Bancshares Inc (PB, Financial) is $87.54 with a high estimate of $95.00 and a low estimate of $78.00. The average target implies an upside of 30.34% from the current price of $67.16. More detailed estimate data can be found on the Prosperity Bancshares Inc (PB) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Prosperity Bancshares Inc's (PB, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Prosperity Bancshares Inc (PB, Financial) in one year is $80.39, suggesting a upside of 19.7% from the current price of $67.16. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Prosperity Bancshares Inc (PB) Summary page.
