Analyst Ratings January 30, 2026

DA Davidson Lifts Cullen/Frost Price Target to $144, Keeps Neutral Rating

Analyst raises 2026 EPS forecast after a stronger-than-expected Q4; valuation cited as reason rating remains unchanged

By Hana Yamamoto CFR
DA Davidson Lifts Cullen/Frost Price Target to $144, Keeps Neutral Rating
CFR

DA Davidson increased its price objective for Cullen/Frost Bankers (NYSE:CFR) to $144 from $136 following fourth-quarter results that outpaced both the firm's forecast and consensus. The broker raised its 2026 EPS estimate, highlighted the bank's sustained record of beating estimates and noted attractive near-term valuation metrics, but left its rating at Neutral because of valuation considerations.

Key Points

  • DA Davidson raised its Cullen/Frost price target to $144 from $136 while maintaining a Neutral rating; valuation was cited as the reason for not upgrading.
  • Cullen/Frost reported a stronger-than-expected Q4 with EPS of $2.56 versus a $2.45 forecast and revenue of $603.38 million versus an expected $578.07 million; management has beaten consensus in 26 of 28 quarters.
  • DA Davidson lifted its 2026 EPS estimate to $10.63 from $10.03 and noted a PEG ratio of 0.69, signaling a low P/E relative to near-term earnings growth; the company has a market capitalization of $8.88 billion and a P/E of 13.91.

DA Davidson raised its target price for Cullen/Frost Bankers (NYSE:CFR) to $144.00 from $136.00 on Friday, while retaining a Neutral rating on the shares. The regional bank has a market capitalization of $8.88 billion and currently trades at a price-to-earnings ratio of 13.91.

The broker's decision to lift the price target followed Cullen/Frost's robust fourth-quarter showing, which topped both DA Davidson's own projection and consensus expectations. DA Davidson noted that company management has outperformed consensus estimates in 26 of the past 28 quarters, a record the analyst firm highlighted as evidence of consistent operational delivery. Over the last twelve months, Cullen/Frost posted revenue growth of 9.02%.

Reflecting the stronger results and management's track record, DA Davidson raised its 2026 earnings-per-share forecast for the bank to $10.63, up from a prior estimate of $10.03. The firm pointed to valuation data from InvestingPro showing the stock trades at a relatively low P/E versus near-term earnings growth, with a price/earnings-to-growth ratio of 0.69.

DA Davidson also emphasized Cullen/Frost's competitive positioning. The analyst firm said the bank has continued to take market share from larger national banks and remains competitive when measured against more recent entrants in the regional banking sector. Despite these operational positives and the higher price target, DA Davidson left its rating at Neutral, explicitly citing valuation as the single factor preventing an upgrade.

In related company disclosures, Cullen/Frost Bankers Inc. reported fourth-quarter 2025 results that beat Wall Street forecasts. The company recorded earnings per share of $2.56, above the expected $2.45, and revenue of $603.38 million, exceeding the forecasted $578.07 million. These quarterly figures underscore the firm's recent streak of surpassing both earnings and revenue estimates and have been noted by analysts, though the coverage referenced no specific upgrades or downgrades following the report.

Investors have responded with increased optimism in light of the stronger-than-expected quarter and the revised forward earnings projection, while DA Davidson's neutral stance highlights that valuation considerations remain central to analysts' assessments.

Risks

  • Valuation remains a restraint on the analyst rating - DA Davidson explicitly cited valuation as the sole reason for keeping a Neutral rating, which could limit upside from the new price target.
  • Analyst responses are uncertain - although analysts have noted the positive quarter, the article reports no specific upgrades or downgrades following the results.
  • Continued outperformance is not guaranteed - Cullen/Frost's record of beating consensus (26 of 28 quarters) underpins positive views, but future results could diverge from this trend.

More from Analyst Ratings

BofA Lifts RTX Price Target to $230, Citing Engine Program Recovery and Defense Momentum Feb 2, 2026 Jefferies Sticks With Buy on Amazon, Citing AWS Re-acceleration and Valuation Upside Feb 2, 2026 BMO Keeps Underperform on Prudential Financial as Japan Operations Raise Red Flags Feb 2, 2026 Oracle Announces $45-50 Billion 2026 Funding Plan as Jefferies Affirms Buy Rating Feb 2, 2026 BofA Lifts Baker Hughes Price Target to $65, Citing Broadening IET Order Mix and Power Systems Opportunity Feb 2, 2026