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RBC Capital Markets downgrades Synovus due to NIM pressure

Downgrades

RBC Capital Markets analyst Steven Duong downgraded Columbus, Ga.-based Synovus Financial Corp. due to net interest margin pressure, uncertain visibility in loan growth and unavailability of share repurchases in 2020.

Duong wrote that he believes NIM pressure will continue for the company, but he expects it to bottom out around 3.23% in the second half of 2020. The company expects loan growth to fall below its 2019 guidance, leaving it no way to grow out of the NIM pressure, according to the analyst.

The analyst downgraded the company's stock rating to "sector perform" from "outperform" and lowered the price target to $39 from $42. He lowered his 2019 EPS estimate to $3.98 from $4.06 and his 2020 EPS estimate to $3.60 from $3.98.

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Raymond James analyst Daniel Cardenas downgraded Nashville, Tenn.-based FB Financial Corp. based on valuation.

Cardenas wrote that the company's third-quarter earnings bested expectations due to sound mortgage banking contributions. The analyst believes FB Financial is "well positioned to post solid balance sheet growth and better than peer profitability," but that those factors are already reflected in the current valuation levels.

The analyst downgraded the company's stock rating to "market perform" from "outperform." He raised his 2019 EPS estimate to $2.86 from $2.81, but lowered his 2020 estimate to $2.93 from $2.98.

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Keefe, Bruyette & Woods analyst Michael Perito downgraded Wilmington, Del.-based WSFS Financial Corp. following the company's third-quarter earnings results.

Perito wrote that the company's third-quarter results exceeded market expectation and its acquisition of Beneficial Bancorp Inc., which closed March 1, is tracking well despite the challenging interest rate environment.

The analyst downgraded the company's stock rating to "market perform" from "outperform." Perito said the new rating more accurately reflects the more balanced upside/downside potential of the company's shares.

He raised his 2019 EPS estimate to $3.67 from $3.52, but his 2020 estimate remained unchanged at $3.50.

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Sandler O'Neill analyst Brad Milsaps downgraded Tupelo, Miss.-based Renasant Corp. citing disappointment in the company's third-quarter EPS.

Milsaps' third-quarter EPS estimate was 74 cents, but the company reported EPS of 64 cents. The miss was due to lower net interest income, lower fee revenues and higher loan loss provisions, according to the analyst.

The analyst downgraded the company's stock rating to "hold" from "buy." He lowered his 2019 EPS estimate to $2.88 from $3.01 and his 2020 EPS estimate to $2.70 from $3.00.