Miller Tabak Downgrades FirstMerit Corporation (FMER) to Buy; 'No-Deal' Conditions Througout 2011 Undercut N-T Upside

Miller Tabak downgraded FirstMerit Corporation (NASDAQ: FMER) from Strong Buy to Buy with a price target of $16.10.

Miller analyst said, "After a whirlwind of distressed-bank deposit-and-asset acquisitions in 2010, we expected to see FMER use those initial forays as a template for further FDIC-assisted deals in 2011-2012. Management has invested considerable time and resources in potential deals, and there appears to be ample "merchandise" available, but some combination of FDIC reluctance and sellers' stubbornness seems to have constrained what had been a promising trend-line for FMER's expansion plans. While we still expect to see FMER make one or more acquisitions in 2012, our timetable has been set back, and in the meantime, prospects for faster economic growth in the Midwest in 2012 also seem slimmer than they did a few months ago. We still see FMER's strategic plan -- solid organic growth in Northeast Ohio and Chicago supplemented by the benefits of well-priced, accretive acquisitions -- as both realistic and achievable over the 2012-2015 period. However, the near-term prospects seem more muted."

"Based on our new assumptions and recent trends, we are lowering our 2011-2012 EPS estimates for FMER to $1.08 and $1.40, respectively, from the previous $1.12 and $1.60."

For an analyst ratings summary and ratings history on FirstMerit Corporation click here. For more ratings news on FirstMerit Corporation click here.

Shares of FirstMerit Corporation closed at $15.45 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• BofA Securities Downgrades O-I Glass Inc. (OI) to Neutral, 'demand for glass-packaged, alcoholic products could remain sluggish'
• Barclays Downgrades SSAB AB (SSABB:SS) (SSAAY) to Equalweight