Capital City Bank downgraded to Neutral from Buy at DA Davidson

DA Davidson analyst Kevin Fitzsimmons downgraded Capital City Bank to Neutral from Buy with a price target of $32.50, down from $33.50, after the bank issued a non-timely filing notice for its Q3 10-Q earlier this week. The bank also issued an explanatory 8-K disclosing that the company had identified certain inter-company transactions between its mortgage sub and the bank sub that were incorrectly recorded and indicated that financial statements for 2022 and 2023 year-to-date shouldn’t be relied upon and will need to be restated. The restatements are likely to be unfavorable and while there was little offered on preliminary magnitude/severity, the firm is “opting to step to the sidelines for now,” the analyst tells investors.