NEW YORK (Reuters) - Cullen/Frost Bankers Inc, the parent of San Antonio, Texas-based Frost Bank, is a bargain investment due to a share price discount in the wake of Hurricane Harvey, Barron’s reported on Sunday.
Investors are betting the company will have difficulty weathering weak energy prices and the effects of the hurricane, according to Barron‘s. However, Barron’s said the shares will have prudent long-term growth.
The company’s conservative capital allocation and strong loan underwriting have boosted its longevity, Barron’s said.
Its shares rose 1.2 percent to $89.10 on Friday and have ranged from $67.86 to $99.20 over the last 52 weeks.
Reporting by Jessica Resnick-Ault; Editing by Jeffrey Benkoe