Maxim analyst Michael Diana downgraded First Republic to Hold from Buy with a price target of $16, down from $75. The analyst cites the company’s 41% decline in deposits, a 25% workforce cut, and a rapid balance sheet shrink. While First Republic bank is not likely to fall, it could be a long grind back to previous levels of profitability and growth, unless management can devise a shorter-term solution that is not accompanied by large dilution of common shareholders, the firm tells investors in a research note.
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