UPDATE: Keefe, Bruyette & Woods Downgrades NewBridge Bancorp to Market Perform, Reiterates $8.50 PT as Shares Climb 22% Since Mid-April

In a report published Wednesday, Keefe, Bruyette & Woods analyst Frank Barlow downgraded the rating on

from Outperform to Market Perform, but reiterated the $8.50 price target. In the report, Keefe, Bruyette & Woods noted, “We are downgrading NBBC to Market Perform from Outperform solely on valuation. The stock has increased ~22% since mid-April versus the KRX at +2%, and now trades at $8.68, slightly above our $8.50 price target. NBBC has gained significant positive momentum after repaying its remaining preferred (formerly TARP), closing its recent CapStone acquisition and announcing a 5% headcount reduction to realign its retail banking segment, and now trades at 13.4x our 2015 EPS and 1.5x year-out TBVBPS. While we're downgrading to Market Perform, we remain favorably inclined longer term as the company appears focused on improving its core efficiency and establishing itself as a premier NC bank.” NewBridge Bancorp closed on Tuesday at $8.68.