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Janney downgrades First Interstate to Neutral after ‘disappointing’ end to 2022

Janney Montgomery Scott analyst Timothy Coffey downgraded First Interstate to Neutral from Buy with a fair value estimate of $38, down from $51, after the company reported a "disappointing" end to 2022 that sets up a "challenging 2023." The firm lowered EPS estimates to reflect expectations for elevated balances of short-term funding to counter deposit outflows and forecasts "sizable" margin compression Q1 before "gradual improvements" through 2023.

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