UPDATE: Stifel Nicolaus Downgrades First Commonwealth Financial to Hold
Stifel Nicolaus lowers its rating on First Commonwealth Financial (NYSE: FCF) to hold following the run on shares.
Stifel Nicolaus says, "Shares of FCF have appreciated 50%, since the U.S. debt downgrade in early August, or 2x the 25% increase in the NASDAQ Bank Index, and nearly 5x the 11% increase in the S&P 500 . Given this outperformance, coupled with shares now trading at a level that we believe is more fairly valued, we are lowering our rating on FCF shares to Hold from Buy. Our investment view of the Northeast Banks suggests that the recent strong outperformance for the group is unlikely to be sustained, and that meaningful upside from here will likely derive more from companies that possess a strong profitability profile, which will allow for meaningful growth tangible book value, supplemented by a favorable dividend yield."
FCF closed at $6.52 a share on Thursday.
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