Morgan Stanley Reiterates Buy Rating on Prosperity Bancshares
Morgan Stanley maintains its buy rating on Prosperity Bancshares with a target price of $85, a 16.39% upside from the current price.
Key Points
- Morgan Stanley reiterated its buy rating for Prosperity Bancshares, setting a price target of $85.
- Morgan Stanley's $85 price target implies 16.39% upside from Prosperity Bancshares, Inc.'s ($PB) current $73.03 share price.
- Shares of NYSE:PB traded near $74.36 on Monday, with a market cap of about $7.5 billion.
- Analysts largely agree with a buy consensus, with a mean target price of $78.85.
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Morgan Stanley reiterated its buy rating for Prosperity Bancshares, Inc. (NYSE:PB) on June 29, 2026. The investment firm set a price target of $85, suggesting confidence in the bank's future prospects.
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Other Institutional Activity in Prosperity Bancshares
Several institutional investors have been active in Prosperity Bancshares recently. BlackRock, Inc. increased its holdings by 464,967 shares, bringing its total to 9,367,272 shares valued at approximately $629.3 million, which is a 5.2% increase. AQR Capital Management LLC significantly boosted its position by 1,722,429 shares, ending with 6,323,144 shares worth about $422.1 million, marking a 37.4% increase. Vanguard Portfolio Management LLC initiated a new position with 5,598,802 shares valued at $376.1 million. State Street Corp trimmed its holdings by 102,424 shares, holding 5,091,478 shares valued at $345.1 million, a 2.0% decrease. Barrow Hanley Mewhinney & Strauss LLC notably increased its stake by 3,625,977 shares to 4,937,028 shares, valued at $331.7 million, which is a 276.6% increase.
Prosperity Bancshares, Inc. Stock Up 1.0%
Shares of NYSE:PB traded near $74.36 on Monday. Prosperity Bancshares has a market cap of approximately $7.5 billion and a P/E ratio of 13.5. The stock has a 52-week low of $61.07 and a high of $77.20, with a 50-day moving average of $69.66 and a 200-day moving average of $68.77. The company has a beta of 0.662, suggesting less volatility compared to the broader market.
$PB price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
In its recent earnings report, Prosperity Bancshares posted revenue of about $1.31 billion, reflecting a growth of 19.9%. The company reported a net margin of 40.35% and a return on equity of 6.73%. Its earnings per share stood at $5.51. The next earnings release is scheduled for July 29, 2026.
Dividend
Prosperity Bancshares offers an annual dividend rate of $2.38, yielding 3.2% with a payout ratio of 42.83%. This provides a steady income stream for investors.
Insider Buying and Selling at Prosperity Bancshares, Inc.
Recent insider activity includes planned sales by Ned Holmes, who sold 1,100 shares on several occasions in June at prices ranging from $67.69 to $72.73. Robert Steelhammer also sold 1,500 shares on May 26 at an average price of $69.50.
Analysts Set New Price Targets
On June 29, 2026, Morgan Stanley maintained its buy rating with a target of $85. Citigroup recently maintained a hold rating with a $75 target on June 25, while Cantor Fitzgerald reiterated a buy rating with an $80 target on June 23. Overall, the consensus among analysts is a buy, with a mean target price of $78.85 based on 13 opinions.
About Prosperity Bancshares
Prosperity Bancshares, Inc., headquartered in Houston, Texas, operates as a bank holding company for Prosperity Bank. It provides a wide range of financial services including deposit products, residential and commercial loans, and various consumer loans. The company also offers digital and mobile banking services. Led by CEO David E. Zalman, Prosperity Bancshares employs approximately 4,429 people.
Bottom Line
Morgan Stanley's reiteration of its buy rating on Prosperity Bancshares with a target price of $85 reflects optimism in the bank's financial health and growth prospects. Shares are currently trading near $74.36, offering potential room for growth. Investors and analysts alike are keeping a close watch on Prosperity Bancshares, especially with its next earnings report due on July 29, 2026.
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