Jefferies Downgrades Associated Banc-Corp (ASB) to Hold
- Netflix, Inc. (NFLX) Tops Q4 EPS by 1c; Subs Beat Views
- S&P 500 ends up slightly with boost from financials; Netflix up late
- Nestle Said Examining Takeover of Mead Johnson (MJN) - Source
- La Quinta Holdings (LQ) Gains on Plan to Split in Two
- After-Hours Stock Movers 01/18: (OCLR) (CSX) (NFLX) Higher; (AMDA) (RCII) (ZYNE) Lower (more...)
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Jefferies downgraded Associated Banc-Corp (NYSE: ASB) from Buy to Hold with a price target of $24.00 (from $23.00) to reflect post-election stock/EPS dynamics.
Analyst Ken Usdin commented, "We downgrade ASB to Hold (from Buy) to reflect a fair valuation and an asset-sensitivity profile that falls amongst the lowest in our coverage universe. While ASB has a decent amount of C&I loans (34% of book), the sensitivity profile is weighed down by large CRE and resi. mortgage portfolios and a deposit franchise that has 15% wholesale/network deposits. Additionally, while ASB has taken its pain on energy loans (8% losses to date), its diversified geographic exposure could keep pressure on credit quality. More than 50% of its energy exposure sits outside of Texas, a state that has seen the bulk of new capital flows, particularly in the West Texas Permian Region (19% of ASB's exposure). Our price target of $24 implies 16.5x our ’18 EPS estimate or 100% of the current '17 S&P 500 P/E multiple. Upside risks to our downgrade: proves more rate-sensitive than expected and energy credit quality improves significantly."
Shares of Associated Banc-Corp closed at $23.00 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Downgrades Alcobra Ltd. (ADHD) to Hold
- Argus Downgrades Wells Fargo (WFC) to Hold
- Macquarie Downgrades Pearson PLC (PSO) to Neutral
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesJefferies & Co, Standard & Poor's
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!