First Republic added to ‘Tactical Underperform’ list at Evercore ISI

Evercore ISI analyst John Pancari is adding First Republic to the firm’s "Tactical Underperform" list as he expects the stock to underperform peers in the near-term in a higher-for-longer Fed policy backdrop. The current environment could imply more meaningful downside risk to 2023 EPS estimates at First Republic than peers due to higher funding costs and limited expense flexibility, said Pancari, who adds that he no change to his longer-term constructive view on the shares despite his near-term cautiousness. Pancari has an Outperform rating and $140 price target on First Republic shares.