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

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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
Jul 2014Raymond JamesUpgradesOutperformStrong Buy
Jul 2014BarclaysMaintainsOverweight
Jul 2014Fig PartnersDowngradesOutperformMarket Perform

View More Analyst Ratings for FRC
View the Latest Analyst Ratings

Posted-In: Casey Haire JefferiesAnalyst Color Downgrades Analyst Ratings

 

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