** Stephens upgrades regional bank Prosperity Bancshares
to "overweight" rating from "equal-weight"
** Brokerage sees 4 basis points (bps) of core net interest margin $(NIM)$ expansion for PB in Q2
** NIM is a key measure of a bank's profitability
** Adds that it expects the acquisition of West Texas-focused Lone Star State Bancshares to represent 5 bps benefit to PB's NIM
** In April, PB completed the acquisition of Lone Star
** Stephens expects additional core NIM tailwinds for PB in H2 2024 and early 2025 due to pay downs of higher cost borrowings
** Ten of 16 brokerages rate the stock "buy" or higher, five "hold" and one "sell"; their median PT is $72 - LSEG
** Stock down 12.8% YTD
(Reporting by Arasu Kannagi Basil in Bengaluru)
((ArasuKannagi.Basil@thomsonreuters.com;))
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