UPDATE: Wunderlich Securities Downgrades Pinnacle Financial Partners to Hold, Reiterates $37 PT as Fundamental Strength is Reflected in Premium Valuation

In a report published Monday, Wunderlich Securities analyst Kevin Reynolds downgraded the rating on Pinnacle Financial Partners PNFP from Buy to Hold, but reiterated the $37.00 price target. In the report, Wunderlich Securities noted, “We are downgrading shares of Pinnacle Financial Partners (PNFP) to Hold from Buy as shares have achieved our 12 to 18 month price target of $37. PNFP is the premier commercial bank in the Nashville MSA, with a market-share-moving strategy that supports above-average organic growth and very high levels of both customer and employee satisfaction and retention. Over the past six months, PNFP shares have increased about 33% (+14% year-to-date) easily outperforming the average increase of 23% for WSI Southern Banks and 16% for the NASDAQ Bank Index over this same period. PNFP's performance suggests a premium valuation is warranted; however, the current 10% to 15% premium on 2015E EPS appears reasonable, limiting potential upside in the near-term, hence our downgrade to Hold at this time.” Pinnacle Financial Partners closed on Friday at $36.76.