First Republic downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Manan Gosalia downgraded First Republic (FRC) to Underweight from Equal Weight with a price target of $102, down from $109, as he initiated coverage of 12 midcap banks and took over coverage of several others. Gosalia prefers to be positioned in names that are best-equipped to manage the headwinds from tightening liquidity conditions as rates rise, and has Underweight ratings on three – First Republic, Silvergate (SI) and SVB Financial (SIVB) – that he sees having the most funding pressure due to idiosyncratic factors, the analyst tells investors.