UPDATE: Goldman Sachs Initiates Coverage on First Niagara Financial Group with Neutral Rating, $8.50 PT

In a report published Wednesday, Goldman Sachs Group initiated coverage on First Niagara Financial Group

with a Neutral rating and $8.50 price target. Goldman Sachs noted, “After completing four deals since late 2009, FNFG's focus is now on growing its franchise. We see its efforts leading to outsized loan growth vs. peers and significant fee income opportunities driving further upside. However, intense competition and low rates are set to continue to mask these initiatives, limiting ROA expansion (we see 80bp in 2014 vs. target of 110bp) and efficiency improvement over the next two years.” First Niagara Financial Group closed on Tuesday at $7.91.