HOMB - FNB shares drop after Jefferies downgrades to Hold on Howard Bank pricing

lakshmiprasad S/iStock via Getty Images Jefferies analyst Casey Haire downgrades F.N.B. Corporation (FNB) stock to Hold from Buy on the basis that the proposed $418M acquisition of Howard Bancorp ([[HBMD]] -3.9%) is aggressively priced given the sub-scale bank's weak profitability in a slow growth Baltimore market. FNB stock drops 4.2% in early trading. Haire increases 2022 EPS estimate by $0.01 to $1.06/share and moves the price target down to $12/share from $14, using a discount P/E multiple of 11x vs. 12.5x peer average to reflect FNB's M&A appetite. FNB's price target implies 8.3% downside. Still, "tangible book value dilution is modest (only 2%) and neutral to capital ratios, which opens the door for more M&A down the road," Haire notes in the report. The Hold rating agrees with the Neutral Quant rating (best grades in Value and Revisions; poorest grade in growth) and diverges from the Very Bullish Wall St. analyst rating (6 Very Bullish, 3

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FNB shares drop after Jefferies downgrades to Hold on Howard Bank pricing