UPDATE: JP Morgan Downgrades City National Corporation to Neutral on Net Interest Margin Pressure
JP Morgan downgraded City National Corporation (NYSE: CYN) from Overweight to Neutral and lowered the price target from $59.00 to $55.00.
JP Morgan commented, "As we turn our outlook to 2013, while we think the company is still well positioned to deliver above peer loan growth in 2013 we see the magnitude of outperformance versus peers as narrowing considerably and, with overall credit leverage likely to increasingly abate in 2013, for sustained pressure on the company's net interest margin to result in a lower core ROTE in the year ahead. With the combination of loan growth likely to slow in 2013 (from 2012) and NIM pressure to increasingly weigh on ROTE, we also think it's going to be very tough for the company to beat consensus EPS estimates in 2013."
City National Corporation closed at $6.53 on Wednesday.
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