Prosperity Bancshares Inc. has seen its stock price drop by 8.56% as it hits a 20-day low amid broader market gains, with the Nasdaq-100 up 0.83% and the S&P 500 up 0.32%.
The company has signed a definitive merger agreement to acquire Stellar Bancorp for approximately $2 billion, which is expected to close in Q2 2026. This merger will elevate Prosperity's deposit ranking in Texas from 9th to 5th, significantly enhancing its competitive position. Additionally, Prosperity reported a net income of $139.9 million for Q4 2025, a 7.6% increase from the previous year, driven by improved interest income and operational efficiency.
The merger with Stellar Bancorp is anticipated to strengthen Prosperity's market position and provide opportunities for future growth, particularly in the Houston area, as the company aims to solidify its competitive advantage in a diverse economic market.
Wall Street analysts forecast PB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PB is 80.50 USD with a low forecast of 75.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
Wall Street analysts forecast PB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PB is 80.50 USD with a low forecast of 75.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 68.430
Low
75.00
Averages
80.50
High
85.00
Current: 68.430
Low
75.00
Averages
80.50
High
85.00
Piper Sandler
Overweight -> Neutral
downgrade
$77 -> $74
2026-01-29
New
Reason
Piper Sandler
Price Target
$77 -> $74
AI Analysis
2026-01-29
New
downgrade
Overweight -> Neutral
Reason
As previously reported, Piper Sandler downgraded Prosperity Bancshares (PB) to Neutral from Overweight with a price target of $74, down from $77, as the firm believes the five-year tangible book value per share earn-back on Stellar Bancorp (STEL) deal will keep investors on the sidelines. The firm notes that there are clear long-term strategic benefits to the Stellar acquisition, primarily acquiring a high-quality deposit base, securing greater Houston MSA density, and deploying excess capital. That said, Piper thinks the price that Prosperity had to pay to acquire this quality was a step too far in the near-term and will keep the shares from outperforming as investors digest the puts and takes of the pro forma franchise.
Piper Sandler
Stephen Scouten
Overweight -> Neutral
downgrade
$77 -> $74
2026-01-29
New
Reason
Piper Sandler
Stephen Scouten
Price Target
$77 -> $74
2026-01-29
New
downgrade
Overweight -> Neutral
Reason
Piper Sandler analyst Stephen Scouten downgraded Prosperity Bancshares to Neutral from Overweight with a price target of $74, down from $77.
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Barclays
Jared Shaw
Equal Weight
downgrade
$83 -> $75
2026-01-29
New
Reason
Barclays
Jared Shaw
Price Target
$83 -> $75
2026-01-29
New
downgrade
Equal Weight
Reason
Barclays analyst Jared Shaw lowered the firm's price target on Prosperity Bancshares to $75 from $83 and keeps an Equal Weight rating on the shares post the Q4 report. The company's acquisition of Stellar Bancorp "steals the spotlight" and its longer expected earn-back weighed on shares, the analyst tells investors in a research note.
TD Cowen
Buy
maintain
$83 -> $84
2026-01-07
Reason
TD Cowen
Price Target
$83 -> $84
2026-01-07
maintain
Buy
Reason
TD Cowen raised the firm's price target on Prosperity Bancshares to $84 from $83 and keeps a Buy rating on the shares. The firm adjusted bank targets as part of a Q4 earnings preview. TD expects "solid" Q4 reports for the banks with continued balance sheet growth, repricing tailwinds, and a "likely more dovish" Federal Reserve chair in 2026. These "durable tailwinds" should lift bank stocks in 2026, the analyst tells investors in a research note.
About PB
Prosperity Bancshares, Inc. is a regional financial holding company providing personal banking services and investments to consumers and businesses throughout Texas and Oklahoma. It offers certificates of deposit, interest checking accounts, money market accounts and savings accounts. It also offers agricultural loans, home equity loans, debit and credit cards, digital banking solutions, trust and wealth management, retail brokerage services, mortgage services, and treasury management. It operates around 283 full-service banking locations: 65 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 62 in the Dallas/Fort Worth area; 22 in the East Texas area; 31 in the Central Texas area including Austin and San Antonio; 44 in the West Texas area including Lubbock, Midland-Odessa, Abilene; Amarillo and Wichita Falls; 15 in the Bryan/College Station area, six in the Central Oklahoma area, and eight in the Tulsa, Oklahoma area.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
