FRC - First Republic Bank stock upgraded to Neutral at Credit Suisse after selloff

Credit Suisse analyst Susan Roth Katzke has upgraded First Republic Bank (NYSE:FRC) to Neutral from Underperform given the regional bank stock's 22% year-to-date slide and resolution of its management transition. Regarding valuation, First Republic (FRC) shares are trading at 19.7x Credit Suisse's 2022 EPS estimate and 17.5x its 2023 estimate vs. large cap banks' 12.0x 2022 EPS estimates, Roth Katzke pointed out in a note to clients on Tuesday. FRC's premium reflects "the quality and sustainability of earnings growth, the longevity of the bank's track record, with a measure of downside protection tied to the salability of this franchise (it's happened before)," the analyst said. Target price stays at $187, implying potential 16% upside. Roth Katzke's Neutral rating aligns with Quant rating of Hold and contrasts with the average Wall Street rating of Buy. Compare First Republic's (FRC) key metrics with those of other large regional banks in the peers tab.

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First Republic Bank stock upgraded to Neutral at Credit Suisse after selloff