UPDATE: Keefe, Bruyette & Woods Reiterates On Cullen/Frost Bankers Following 3Q14 Results

In a report published Thursday, Keefe, Bruyette & Woods analyst Brady Gailey reiterated a Market Perform rating on

, and raised the price target from $76.00 to $80.00. In the report, Keefe, Bruyette & Woods noted, “3Q14 earnings came ahead of KBW/consensus mostly on lower NCOs and specifically a large recovery, which added 3c-4c/shr to EPS. Period-end loan growth was less than expected at 3% LQA as CFR points to a ‘highly competitive lending environment.' Deposit growth was robust at 17% LQA. Our calculated-NIM fell 11 bpts LQ to 3.36% mostly on higher bond/cash balances. Spread/NII showed nice LQ growth. CFR on the call discussed its energy book (~14% of loans), saying energy prices would need to fall lower and stay low for longer before CFR sees any real negative financial impact. We're modestly raising estimates and our price target.” Cullen/Frost Bankers closed on Wednesday at $79.73.