UPDATE: RBC Capital Markets Downgrades Umpqua on Limited Near-Term Upside
In a report published Tuesday, RBC Capital Markets analyst Joe Morford downgraded the rating on Umpqua (NASDAQ: UMPQ) from Outperform to Sector Perform, and lowered the price target from $22.00 to $20.00.
In the report, RBC Capital Markets noted, “We are lowering our rating on Umpqua's shares to Sector Perform from Outperform based on a weaker outlook for core earnings including upcoming 1Q14 results. While we remain positive on next month's Sterling acquisition, the synergies will not impact earnings much until later this year. Therefore, we see less upside potential near-term relative to some of the other western bank stocks and are lowering our price target from $22 to $20.”
Umpqua closed on Monday at $18.73.
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