Jefferies Downgrades Renasant Corp (RNST) to Hold

November 28, 2016 7:53 AM EST
Get Alerts RNST Hot Sheet
Price: $39.60 +0.46%

Rating Summary:
    6 Buy, 8 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Jefferies downgraded Renasant Corp (NASDAQ: RNST) from Buy to Hold with a price target of $41.00 (from $39.00) to reflect post-election stock/EPS dynamics.

Analyst Ken Usdin commented, "We move RNST to Hold (from Buy) after a good catch-up move that puts the company at a reasonable valuation. Pre-election, the stock had traded at a 1.5x discount to the smidcap group avg., but after a 24% post-election gain (vs. 18% for the KRE), the gap has narrowed to under 1x. Further upside could be inhibited by a bottom-quartile asset-sensitivity profile, which is largely driven by a relative small C&I book (only 12% of loans), the lowest in our coverage universe. Additionally, the onset of higher rates could pressure mortgage banking fees (39% of fees YTD), despite the business not being overly weighted towards refi originations (38% in 3Q). Our price target of $41 implies 15.5x our '18 EPS estimate or 90% of the current '17 S&P 500 P/E multiple. Upside risks to our downgrade: RNST proves more rate-sensitive than expected and conducts more highly accretive acquisitions."

For an analyst ratings summary and ratings history on Renasant Corp click here. For more ratings news on Renasant Corp click here.

Shares of Renasant Corp closed at $41.18 yesterday.

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