JMS Downgrades Pinnacle Financial (PNFP) to Neutral

July 21, 2008 9:16 AM EDT

Janney Montgomery Scott downgrades Pinnacle Financial (NASDAQ: PNFP) from Buy to Neutral and maintains their 12-month fair value estimate of $25.00. The downgrade is due to the recent outperformance of the shares over the past week.

The firm said, "Since achieving a closing price of $20.44 on July 11, 2008, shares of Pinnacle have increased 22.6% versus an increase of 7.1% for the NASDAQ Bank Index over the five trading sessions. At 16.0x our 2008 EPS estimate, 13.5x our 2009 EPS estimate and 2.5x TBV, shares of Pinnacle reflect a significant (and well deserved) premium valuation versus peers, suggesting a relatively full valuation, in our opinion. We still believe that Pinnacle has one of the best community bank management teams in the country operating in one of the nation’s most favorable markets. However, valuation forces us to the sidelines to await a more attractive entry point for investors to establish positions in this "best-in-class" community bank."

Pinnacle Financial Partners, Inc. (Pinnacle Financial) is a bank holding company whose primary business is conducted by its wholly owned subsidiary, Pinnacle National Bank (Pinnacle National or the Bank).

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