UPDATE: D.A. Davidson Downgrades Old National Bancorp to Neutral, Lowers PT as Landscape Becomes More Challenging

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

from Buy to Neutral, and lowered the price target from $16.50 to $15.00. In the report, D.A. Davidson noted, “We are reducing our 2015 EPS estimate to $1.07 from $1.18 and establishing a 2016 EPS estimate of $1.17. Our 2015 estimates are reduced primarily from lower core NIM, lower fee income, and a higher effective tax rate partially offset by low noninterest expense. Using the same 0.5-pt P/E multiple discount to the peer group median P/E, our price target decreases from $16.50 to $15.00. Given our forecast for challenging EPS growth through 2015, we believe the shares are likely to mark time and are reducing our rating to NEUTRAL from Buy.” Old National Bancorp closed on Monday at $13.38.