Citi withdraws Neutral rating on First Republic

Citi analyst Arren Cyganovich withdrew the firm’s Neutral rating and $132 price target on First Republic Bank citing the recent volatility in the shares, the lack of information on specific deposit outflows, and a "wide array of potential outcomes including takeover, capital raise, and/or government intervention." The bank is in an unprofitable position, meaning some action needs to be taken relatively quickly to stem capital depletion, the analyst tells investors in a research note. Citi says a takeout of First Republic "would be challenging."