UPDATE: D.A. Davidson Raises PT on Prosperity Bancshares Following FVNB Corp. Merger Agreement

In a report published Tuesday, D.A. Davidson analyst Gary P. Tenner reiterated a Neutral rating on Prosperity Bancshares PB, and raised the price target from $50.00 to $60.00. In the report, D.A. Davidson noted, “Prosperity Bancshares Inc. signed a definitive merger agreement with FVNB Corp. and its wholly owned subsidiary First Victoria National Bank (FVNB). FVNB held $2.4 billion (~16% of PB) in assets and operated 34 branches throughout Texas' Gulf and Central regions. This acquisition will complement PB's current franchise footprint and diversify its revenue stream by adding FVNB's brokerage and trust business. It specifically fortifies PB's North Houston footprint, where Exxon Mobil (XOM - $90.30) is building a 400-acre headquarters set to employ over 10,000 people.” Prosperity Bancshares closed on Monday at $53.42.