Cullen/Frost price target lowered to $116 from $121 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Cullen/Frost to $116 from $121 and keeps an Equal Weight rating on the shares. Midcap bank stocks have rallied in recent weeks as fears of accelerating deposit outflows have largely dissipated, but the firm believes the rally has “now largely played out” and expects the group could be under some near-term pressure and “move sideways thereafter” as the focus shifts back to deposit costs and NII and members of the group make more cuts in guidance, the analyst tells investors in an earnings preview note.