First Foundation downgraded at Wedbush on net interest margin pressure fears

Wedbush downgraded First Foundation to Neutral from Outperform with a price target of $6, down from $7. The company continues to face rising funding costs and the firm fears net interest margin pressure may occur in Q4. The company also has above-average commercial real estate, or CRE, exposure at 50% of earning assets, compared to 31% for mid-cap peers, the analyst tells investors. The firm is lowering its 2024/2025 core EPS estimates owing to lower NIM assumptions, the analyst added.