UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Associated Banc-Corp

In a report published Friday, Deutsche Bank reiterated its Buy rating on Associated Banc-Corp ASBC, but slightly lowered its price target from $14.50 to $14.00. Deutsche Bank noted, “We still like the risk/reward of the shares, as we expect less downside risk and stronger upside potential given (1) the greater discount on P/TBV versus the industry in the context of ASBC's core ROTCE potential, (2) material excess capital, and (3) the higher likelihood ASBC can grow NII by offsetting NIM pressure with balance sheet growth, supporting greater operating leverage with slow expense growth. As banks are likely to sustain greater NIM pressure in the persistent low interest rate environment, we believe banks like ASBC that can offset NIM pressure with growth and have material excess capital to support growth and share repurchases are better positioned to outperform.” Associated Banc-Corp closed on Thursday at $13.17.