UPDATE: BMO Capital Markets Reiterates Underperform Rating, Raises PT on Cullen/Frost Bankers

In a report published Friday, BMO Capital Markets reiterated its Underperform rating on Cullen/Frost Bankers

, and raised its price target from $53.00 to $56.00. BMO Capital Markets noted, “Average loan growth remained robust, up $233 million (11% annualized). Ending loan balances were $356 million higher than average balances, pointing to good momentum. CFR is optimistic that loan growth continues into 2013 as new loan commitments hit a four-year high. CFR is benefiting from its outbound calling effort and strong Texas economy. The margin was under continued pressure from elevated excess liquidity, which is expected to continue in 2013. Credit quality remains strong; however, reserves have reached a level at which CFR needs to start adding to reserves.” Cullen/Frost Bankers closed on Thursday at $58.89.