UPDATE: Citigroup Keeps Neutral, Reduces PT to $8.50 on First Niagara Financial Group on Lower NIMs

Citigroup reiterates its Neutral rating on First Niagara Financial Group

and cuts its price target from $10 to $8.50. Citigroup comments, "We reduce our 2012, 2013 and 2014 NIM estimates by 5 bps, 12 bps and 19 bps respectively to 3.45% in 2012, 3.34% in 2013 and 3.32% in 2014. This compares to 3.34% at the end of 1Q12. …In the hypothetical case that rates remain flat through 2014, we estimate that 2014 estimates could fall by another ~4% vs our new estimates. Our 2012 and 2013 estimates would be roughly unchanged." FNFG closed at $7.88 on Thursday.