Should You Buy Prosperity Bancshares Inc (PB) Today? Analysis, Price Targets, and 2026 Outlook.
Analysis Updated At
2026/01/30
PB is not a good buy right now for an impatient investor. The stock is still in a post-deal selloff with bearish momentum (MACD worsening) and multiple fresh Wall Street downgrades/price-target cuts tied to the Stellar Bancorp acquisition’s longer tangible book value earn-back. While fundamentals are steady and the price is near support (which could produce a bounce), the near-term setup is more “stabilize first” than “buy now.”
**Intellectia Proprietary Trading Signals**
- [AI Stock Picker](module://ai_stock_pick): No signal on given stock today.
- [SwingMax](module://swingmax): No signal on given stock today.
Technical Analysis
Trend/momentum is currently bearish. MACD histogram is -0.53 (below zero) and negatively expanding, indicating downside momentum is strengthening rather than fading. RSI(6) at ~34 is near oversold territory, suggesting selling pressure has been heavy, but not yet a clear reversal signal. Moving averages are converging, consistent with a transition phase after a sharp drop rather than a confirmed uptrend.
Key levels: Pivot ~71.04 is overhead and acts as near-term resistance; PB at ~68.43 is below the pivot, reinforcing a bearish/neutral bias. Immediate support is S1 ~66.85; if that breaks, next support is S2 ~64.26. Near-term upside levels to reclaim are ~71.04 then ~75.22.
Pattern-based forward view provided: ~40% chance of -0.69% next day, +2.21% next week, +3.44% next month—suggesting modest rebound odds, but not strong enough to override current negative momentum.
Analyst Ratings and Price Target Trends
Recent trend is clearly negative/less supportive. In the last few weeks, PB saw multiple downgrades and price-target reductions tied to the Stellar acquisition and near-term valuation/earnings-growth constraints:
- Piper Sandler downgraded to Neutral (from Overweight), PT cut to $74 (from $77), citing long earn-back on the deal.
- Barclays kept Equal Weight but cut PT to $75 (from $83) post-Q4, noting the acquisition ‘steals the spotlight’ and longer earn-back weighed on shares.
- Raymond James downgraded to Market Perform (from Outperform) citing fair valuation and challenged near-term growth expectations.
Offsetting pro view: TD Cowen maintained Buy and raised PT to $84 (from $83) earlier in January, expecting durable tailwinds for banks.
Wall Street pros vs cons: Pros focus on strategic Texas scale, deposit quality, and macro bank tailwinds; cons focus on deal price/earn-back timeline, near-term underperformance risk, and reduced probability of multiple expansion.
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 80.5 USD with a low forecast of 75 USD and a high forecast of 85 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.
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 80.5 USD with a low forecast of 75 USD and a high forecast of 85 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.
Current: 68.430
Current: 68.430
