Janney Montgomery Scott downgraded First Republic Bank to Sell from Neutral with a fair value estimate of $8, down from $10. The analyst reduced earnings estimates following last night’s Q1 results to account for a potential dilutive equity raise and asset sales this year. First Republic’s positive earnings in the quarter were overshadowed by the acknowledgement that deposits declined by more than $100B and the implications of the outflow on future earnings, the analyst tells investors in a research note. Janney says the bank "needs to pull off the mother of all pivots to survive."
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly
See the top stocks recommended by analysts >>
Read More on FRC:
- FRC Crashes as Outflows Puts Its Existence at Risk
- First Republic Plans up to 25% Layoffs after $100B Deposit Flight, Shares Plunge
- First Republic price target lowered to $13 from $15 at Piper Sandler
- First Republic price target lowered to $15 from $17 at Barclays
- First Republic Bank Stock (NYSE:FRC): Bank Crisis Overblown; Easy Earnings Beat