TD Cowen has increased its 12-month price objective for Cullen/Frost Bankers (NYSE:CFR) to $160.00 from $154.00, while maintaining its current rating on the regional Texas-based bank. The new target is roughly a 15% premium to the stock's most recently reported trading level of $139.11 and sits close to the analysts' high-end target of $163.
The firm said the upward revision follows Cullen/Frost's fourth-quarter 2025 core earnings per share of $2.67, a metric TD Cowen views as beating expectations. TD Cowen noted that the quarter's outperformance was driven by stronger-than-expected spread income and fee revenue together with lower operating expenses, the combination of which supported solid profitability metrics across the period.
TD Cowen highlighted a 16% return on common equity for Cullen/Frost over the last twelve months, a figure it cited in support of the bank's maintained profitability. The research note also pointed to ongoing balance sheet momentum and a multi-year expansion strategy that the firm says is beginning to show traction in underlying fundamentals.
Those fundamental trends are reflected in recent top-line growth: Cullen/Frost reported revenue growth of 9.62% over the past twelve months and a five-year revenue compound annual growth rate of 13%, according to the data cited. In addition, InvestingPro data referenced by the research firm shows 11 analysts have recently revised earnings expectations for the bank upward, reinforcing a generally more optimistic consensus among some market observers.
Separately, Cullen/Frost's quarter-to-quarter financials showed reported fourth-quarter 2025 GAAP results that also topped forecasts. The company posted earnings per share of $2.56, above the consensus estimate of $2.45, and reported revenue of $603.38 million, outperforming the anticipated $578.07 million.
Market responses to the quarter extended beyond TD Cowen. DA Davidson lifted its price target to $144 from $136 while keeping a Neutral rating, and highlighted that Cullen/Frost has outperformed consensus estimates in 26 of the last 28 reporting quarters. The sustained pattern of beating estimates was cited as evidence of consistent execution against expectations.
Corporate governance developments were also disclosed. The bank announced the election of two new directors, Marsha M. Shields and Jeff Rummel, to its board, and said that director Chris Avery plans to retire in April after serving since 2015. The filing noted that Marsha M. Shields is the CEO and Managing Partner of McCombs Enterprises.
TD Cowen characterized the near-term setup for Cullen/Frost as favorable, pointing to the continued organic expansion trajectory. At the same time, InvestingPro's assessment — as cited in the research — places Cullen/Frost slightly above its Fair Value estimate and assigns the firm an overall financial health score of "FAIR." The bank's long record of returning capital to shareholders was also noted: Cullen/Frost has increased its dividend for 33 consecutive years, a fact the research service highlighted as indicative of management's confidence in ongoing performance.
The combination of better-than-expected quarterly drivers, upward analyst revisions and management actions appear to have underpinned TD Cowen's decision to raise the price target while retaining its rating. Investors will likely monitor how the bank sustains spread and fee income, converts its multi-year expansion into continued revenue growth, and navigates governance changes on the board as they evaluate the stock's forward trajectory.