BUZZ-Stephens upgrades Prosperity Bancshares to 'overweight'

Reuters06-27

** 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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