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UPDATE: Jefferies Downgrades First Republic Bank to Hold, Lowers PT on Weak Deposit Growth

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Notable Stocks Trading Ex-Dividend Tuesday, July 26
Can Record-High Loan Originations Protect First Republic Bank's From Low Interest Rates?

In a report published Tuesday, Jefferies analyst Casey Haire downgraded the rating on First Republic Bank (NYSE: FRC) from Buy to Hold, and lowered the price target from $44.00 to $40.00.

In the report, Jefferies noted, “We downgrade to Hold given weak deposit growth and lower gain-on-sale (GOS). Loan pipelines remain strong, but deposit growth continues to lag, which will force FRC to sell production despite weaker GOS. FRC is also raising deposit rates to boost funding, which will exacerbate NIM compression. FRC deserves its premium multiple (16x '14), but we see negative revision risk as street plays catch-up to higher deposit costs & weaker GOS.”

First Republic Bank closed on Monday at $39.93.

Latest Ratings for FRC

DateFirmActionFromTo
Aug 2016BarclaysMaintainsOverweight
Jul 2016Keefe Bruyette & WoodsMaintainsMarket Perform
Jul 2016JP MorganMaintainsOverweight

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Posted-In: Casey Haire JefferiesAnalyst Color Downgrades Analyst Ratings

 

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