UPDATE: Keefe, Bruyette & Woods Upgrades Cullen/Frost Bankers to Market Perform, Names $76 PT on Levers to Increase Profitability

In a report published Thursday, Keefe, Bruyette & Woods analyst Brady Gailey upgraded the rating on Cullen/Frost Bankers CFR from Underperform to Market Perform, and named a $76.00 price target. In the report, Keefe, Bruyette & Woods noted, “1Q14 came in-line with consensus although lower than our estimate. EOP/avg loan growth came at 10% LQA, higher than our 7% est. NIM expanded 6 bpts on a higher muni allocation/bond yield. We're raising 2015E on a higher NIM as we now have CFR increasing muni bonds at YE '14 to offset the negative impact of expiring swap gains. With the higher EPS, we are upgrading the shares of CFR to Market Perform from Underperform.” Cullen/Frost Bankers closed on Wednesday at $77.79.