Cullen/Frost Bankers (NYSE:CFR) Guides Lower on Dubin, NIM

Saying Cullen/Frost Bankers (NYSE:CFR) faces pressures many regional banks are facing, FBR also noted the lower guidance from the company on NIM and Dubin.

FBR says, "We reduce our FY11 EPS estimate to $3.55, from $3.70, and FY12's EPS estimate to $4.15, from $4.40. Quarterly results reflected challenges faced by most regional banks. While management is cautiously optimistic regarding loan growth prospects and the relative strength of both its franchise and the Texas economy, fee income headwinds (i.e., Reg. E, Dubin Interchange) and NIM pressures caused management to guide FY11 consensus estimates lower. With several Texas banks having reported earnings, the common theme we find is varying degrees of cautious optimism, with which we are inclined to agree. However, we note that CFR's valuation leaves the shares fairly valued."

FBR Capital maintains a "Market Perform" on Cullen/Frost Bankers (CFR), which closed Thursday at $58.58, down $0.34, or 0.58 percent. FBR has a price target of $59 on Cullen/Frost.