UPDATE: Jefferies Downgrades Susquehanna Bancshares to Hold on Decelerating EPS Growth Forecast

In a report published Monday, Jefferies analyst Casey Haire downgraded the rating on Susquehanna Bancshares SUSQ from Buy to Hold, but slightly raised the price target from $12.00 to $12.50. In the report, Haire noted, “We are downgrading SUSQ to Hold due to valuation and a decelerating EPS growth forecast. Although SUSQ trades at a 1 point discount to peers (12.5x 2014 vs. 13.5x peer avg.), its serial acquirer status will likely keep multiple expansion in check. Further, growth in EPS run-rate is likely to slow down given tapering purchase accounting benefits, no more cost saves and limited credit leverage.” Susquehanna Bancshares closed on Thursday at $12.43.