UPDATE: Compass Point Increases PT from $54 on Cullen/Frost Bankers

According to a research report this morning, Cullen/Frost Bankers CFR exceeded EPS expectations with a $0.99 EPS for 1Q12. Thus, Compass Point increases FY12/13 EPS estimates from $3.56 and 3.68 to $3.91 and $3.98, respectively and increases the PT from $46 to $54. Compass Point explained, “With 40% + of their loan portfolio in C&I loans (and a historically low line usage rate), a footprint in the Texas market, and strong capital levels, CFR continues to be in a position of strength. Loan growth is set to accelerate in coming quarters and credit quality improvement should lead to near non-existent provision expense. However, lower loan origination and securities yields will offset some of these benefits.” Cullen/Frost Bankers closed Friday at $58.54 as Compass Point maintains its Neutral rating.