SIVB - SVB Financial stock dips as Oppenheimer cut to Perform on softer Q3 guidance

SVB Financial ( NASDAQ: SIVB ) shares slumped 3.7% in Monday afternoon trading as Oppenheimer analyst Chris Kotowski downgraded the Silicon Valley lender to Perform after it announced new guidance that disappointed investors.

During a Barclays Financial conference presentation, SVB ( SIVB ) came out with a fresh third-quarter outlook in net interest margin, targeting 2.18%-2.23%, down from 2.24% in Q2, Kotowski wrote in a note to clients.

For net interest income, the regional bank guided for $1,140M-1,170M in Q3, compared with $1,177M in Q2 and the consensus of $1,244M, the note read.

"We find the miss unsettling because SIVB should in theory be among the industry's most rate-sensitive banks," Kotowski said.

As seen in its Q2 results , SVB ( SIVB ) was already dealing with a cooldown in venture capital investing as well as falling startup valuations amid central bank tightening, and thus higher deposit costs.

"Its deposits now look a bit less 'sticky' than we previously would have thought," the analyst said.

Kotowski's Perform rating diverges from SA's Quant rating of Sell and the average Wall Street Analyst rating of Buy.

Previously, (July 25) SVB Financial upgraded to Outperform at Evercore after expectation reset .

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