UPDATE: Piper Sandler Downgrades Capstar Financial Holdings Inc (CSTR) to Neutral

Piper Sandler analyst Stephen Scouten downgraded Capstar Financial Holdings Inc (NASDAQ: CSTR) from Overweight to Neutral with a price target of $19.00 (from $24.00).

The analyst comments "We are reducing our rating to Neutral from Overweight, lowering our 2022/23E's to $1.83/$1.87 (from $1.93/ $2.20) and establishing 2024E's of $2.01. Our estimate changes reflect lower NII and weaker fees, partially offset by a lower expense run-rate. 3Q22 was a difficult quarter for CSTR where $2.2M in operational losses exacerbated recent issues at the bank - most notably within Tri-Net. In 3Q, CSTR took a $2.1M loss as the last of its Tri-Net loans to HFI. Hopefully CSTR can put these problems in the rear-view, as we think the bank is better positioned than anytime post-IPO, but it will likely take several clean quarters for CSTR to fully regain the trust of investors. With that in mind, we are lowering to Neutral and reducing our PT to $19, now based on ~10x 23E vs ~11x previously due to concerns around risk management and EPS growth rates."

For an analyst ratings summary and ratings history on Capstar Financial Holdings Inc click here. For more ratings news on Capstar Financial Holdings Inc click here.

Shares of Capstar Financial Holdings Inc closed at $18.21 yesterday.

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