UPDATE: Morgan Keegan Downgrades Trustmark to Market Perform
Morgan Keegan has downgraded Trustmark Corporation (NASDAQ: TRMK) from Outperform to Market Perform after shares closed yesterday within 2% of its $25 price target.
In the report, Morgan Keegan writes, "We believe that TRMK remains well positioned to benefit from an ongoing US economic recovery, but absent a material pick-up in industry-wide loan growth and a higher interest rate environment (unlikely near-term given the Fed's intent to keep short term interest rates unchanged until 2014), revenue and EPS growth are likely to be challenging. We are trimming our FY12 and FY13 EPS estimates to $1.57 from $1.60 and $1.66 from $1.70 respectively with the downward revisions driven by lower fee revenues and higher overhead costs. Our 12 month price target of $25 implies 15.0x our 2013 EPS estimate and 1.7x YE12 TBV estimate versus 12.8x P/2013 EPS and 1.7x P/TBV median of MK small-cap peers."
Trustmark is currently trading down $0.95 from yesterday's $24.63 closing price.
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