Atlantic Equities downgraded First Republic to Neutral from Overweight without a price target. The analyst cites the bank’s “lack of clarity and unprecedented uncertainty” for the downgrade. Management is exploring different strategic options which may include a full sale or divestments of parts of the loan portfolio, the analyst tells investors in a research note. The firm says the limited information provided implies that First Republic’s balance sheet has increased substantially, “which may well necessitate a capital raise.” It says the “exceptionally high level of uncertainty makes providing forecasts challenging.”
Published first on TheFly
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