Stock Price & Analysis

Based on the analysis of Cullen/Frost Bankers Inc. (CFR), considering the oversold RSI, mixed analyst sentiment, and sector outlook, it may be a good time to buy CFR stock for its dividend yield and potential rebound. However, exercise caution due to bearish technical indicators and economic uncertainties.

The price prediction for CFR stock in 2025 is expected to range between $138 and $148, with a potential upside driven by strong Q4 results and positive analyst sentiment.

1. Price Target: $143.02 (average analyst target).
2. Reason: Oversold RSI (18.19), Fibonacci resistance levels at $138.40 and $141.84, and positive analyst upgrades.

The S1 support level for CFR Stock is $121 ,The R1 resistant level for CFR Stock is $136.09.

As of the end of day on 2025-03-17, the price of CFR Stock was $121.51.

The target price for CFR Stock according to analyst rating is 147.37, with the highest price target at 185.30 and the lowest at 121.00. Analysts have a Hold rating on CFR Stock overall.

The market cap of CFR is $7.9B.

Analysis and Insights

Cullen/Frost Bankers (CFR) appears to be overvalued based on several key metrics and analysis:

1. Valuation Metrics:

   • PE Ratio: CFR's PE ratio of 15.15 (Q4 2024) is higher than the industry average of 12-14, indicating a premium valuation.
   • EV/EBITDA: At 17.17, it exceeds the typical range of 10-14 for regional banks, suggesting overvaluation.
   • PS Ratio: The PS ratio of 4.42 is above the industry average of 3, further indicating a higher valuation.
   • PB Ratio: A PB ratio of 2.30 is above the industry average of 1.5, signaling overvaluation.

2. Technical Analysis:

   • The stock's RSI (14-day) of 29 suggests it may be oversold, but the MACD indicates downward momentum, reflecting bearish sentiment.

3. Analyst Sentiment:

   • While Bank of America lowered the price target to $141, they maintain a Buy rating. The average price target is $144, slightly above the current price of $128.34.

4. Economic Outlook:

   • Concerns about economic growth and rising capital costs, as well as potential recession risks, could impact CFR's valuation.

Conclusion

CFR's valuation metrics suggest it is overvalued compared to industry peers. However, the dividend yield of 2.79% and analyst price targets indicate some potential upside. Investors should exercise caution due to economic uncertainties and sector-specific risks.

Cullen/Frost Bankers, Inc. is a financial holding and bank holding company. The Company's segments include Banking and Frost Wealth Advisors. The Banking segment includes both commercial and consumer banking services and Frost Insurance Agency. Its commercial banking services are provided to corporations and other business clients and include a range of lending and cash management products. Its consumer banking services include direct lending and depository services. Its Frost Insurance Agency provides insurance brokerage services to individuals and businesses covering corporate and personal property and casualty products, as well as group health and life insurance products. The Frost Wealth Advisors segment includes fee-based services within private trust, retirement services, and financial management services, including personal wealth management and securities brokerage services. The Company serves a range of industries, including energy, manufacturing, construction, and others.

Price Prediction for CFR Stock by 2030

Based on current trends and analyst expectations, CFR stock is predicted to reach $165 by 2030. This projection is supported by the company's strong financial health, consistent dividend growth, and positive analyst sentiment.

• Reasoning:
  • CFR has shown steady earnings growth of 5.2% annually over the past five years and maintains a comfortable dividend payout ratio of 42%.
  • Analysts have raised their price targets, with a consensus target of $143.02, indicating confidence in the stock's upside potential.
  • The banking sector's outlook remains stable, with CFR well-positioned to benefit from its strong presence in the Texas market and expanding operations.

CFR has a total of 5495 employees.