UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on People's United Financial

In a report published Monday, J.P. Morgan & Co. reiterated its Neutral rating on People's United Financial

, and slightly raised its price target from $12.00 to $12.50. J.P. Morgan noted, “Although the industry as a whole is experiencing varying degrees of NIM pressure, at People's core NIM pressure came in roughly 2x that being seen by peer regional banks. While the reported NIM was down 4 bps q/q, with 1x cost recovery income helping to soften the blow, the operating NIM compressed by 12 bps sequentially, to 3.69% in the second quarter. This decline resulted from a combination of lower loan yields (8 bps drag on NIM) as well as time deposit rates reset higher tied to acquired deposit amortization running off (4 bps drag). The company guided the start point for the reported NIM headed into 3Q in 3.90% range (adjusting for the one-time cost recovery income) and telegraphed more NIM pressure ahead, given pressure on asset yields and a declining ability to offset through lower deposit costs.” People's United Financial closed on Friday at $12.48.