UPDATE: Raymond James Downgrades Renasant
In a report published Thursday, Raymond James analyst Michael Rose downgraded Renasant (NASDAQ: RNST) to Market Perform from Outperform, changing its price target to NM from $31.00.
According to the report, the downgraded follows 4Q13 results. Given the reduction in the analyst's EPS estimates coupled with the proximity to their prior price target, they now view risk-reward as balanced.
“Despite our less constructive view on the stock, we continue to view its fundamental story positively given further expected improvement in credit metrics and related costs, better than peer core loan growth, projected positive operating leverage, and improving profitability as the earnings accretion from the First M&F acquisition is realized,” the report noted. “Moreover, we believe it could re-enter the M&A arena this year, sooner than the Street may be anticipating.”
Some highlights from the report included:
-4Q13 operating EPS above forecast -Payoffs impact loan growth -Fee income below forecast -NIM roughly in line with forecasts
RNST closed Wednesday at $30.14 with shares trading down at 2.55 percent.
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