UPDATE: D.A. Davidson & Co. Downgrades S.Y. Bancorp on Valuation

In a report published Monday, D.A. Davidson & Co. analyst Stephen Geyen downgraded the rating on

from Buy to Neutral, but raised the price target from $34.00 to $36.00. In the report, D.A. Davidson & Co. noted, “We are reducing our rating of S.Y Bancorp to NEUTRAL from Buy based on valuation. We note that our rating change does not suggest a change in our outlook on the fundamental performance of the bank. In fact, we believe fundamentals remain exceptionally good as defined by the following: (1) An outlook for above peer profitability as measured by ROA and ROTCE; (2) Loan growth that should compare well to peers as the pipeline for new loans improves in the Louisville, Indianapolis and Cincinnati markets; and (3) A strong capital position that could support accretive acquisitions.” S.Y. Bancorp closed on Friday at $33.80.