Big bank infusion could be ‘elegant solution’ for First Republic, says Citi

With The Wall Street Journal and other media outlets reporting that the largest U.S. banks are considering adding more than $25B of deposits at First Republic as a way to help stem the outflows of deposits, Citi analyst Arren Cyganovich said this plan could be "an elegant way to restore confidence" for both First Republic and for "regional banks at large." However, details "remain scarce" and the firm remains on the sidelines given remaining questions, though it says "this solution appears to us to be the most promising result" for First Republic. Citi keeps a Neutral rating and $132 price target on First Republic shares, which are up $1.09, or about 3%, to $32.25 in afternoon trading.