Piper downgrades United Community Banks on limited earnings catalysts

Piper Sandler analyst Stephen Scouten downgraded United Community Banks to Neutral from Overweight with a price target of $27, down from $31. The analyst reduced estimates following the Q3 report to reflect lower net interest income on higher funding costs and weaker fee income. Deposit costs surprised to the upside again, which pressured shares and net interest margin expectations moving forward, the analyst tells investors in a research note. Piper says its updated estimates signal that the stock is fairly valued relative to peers, even after losing 6% today. With limited earnings catalysts and credit becoming an overhang, investors “will press pause on UCBI for now,” says the firm.