Bank Stock Gains Munger-Like Appeal After Sell-Off: JPMorgan


A Financial Gem: Cullen Frost Bankers Catches JPMorgan’s Eye

In the realm of investing, finding a hidden gem that aligns with the wisdom of investing giants like the late Charlie Munger is akin to striking gold. Enter Cullen Frost Bankers, a regional bank that has captured the attention of JPMorgan analysts.

“When we think of the legendary Charlie Munger and his belief in acquiring exceptional businesses at reasonable prices, Cullen Frost stands out as a perfect match,” remarked Steven Alexopoulos, JPMorgan’s bank analyst, in a recent note.

Unwavering Growth Amidst Market Jitters

Despite facing an earnings setback in the first quarter of the year, Cullen Frost Bankers remains a beacon of financial strength. The bank’s relentless organic growth continues to impress, with loan growth surging at an annualized pace of 11% in the last quarter, while many competitors have seen stagnation.

“The recent market overreaction to CFR’s underperformance creates an exceptional buying opportunity in a company poised for exceptional growth in crucial metrics that fuel the long-term success of bank stocks,” stated JPMorgan’s analysts.

A Value Proposition That Munger Would Envy

Trading at a modest 13.1 times forward earnings, compared to a historical average of 16 times, Cullen Frost Bankers offers investors a compelling value proposition. JPMorgan has reaffirmed its overweight rating for the stock and set a 12-month price target of 0 per share, representing a robust upside potential of 32% from its current price.

The Munger Mantra in Action

Charlie Munger, Berkshire Hathaway’s late vice chairman, was a staunch advocate for investing in high-quality businesses with a margin of safety. Cullen Frost Bankers embodies this investment philosophy, as it exhibits exceptional growth, strong fundamentals, and an attractive valuation.

“Munger believed in investing in wonderful businesses at fair prices, and Cullen Frost exemplifies this philosophy,” said Alexopoulos.


In the competitive world of finance, identifying a gem like Cullen Frost Bankers is a testament to the perspicacity of astute analysts. With its relentless growth, conservative valuation, and adherence to sound investment principles, the bank stands poised for continued success. Investors seeking to emulate the legacy of Charlie Munger should seriously consider adding Cullen Frost to their portfolios.

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