Downgrade
* DA Davidson analyst Kevin Reevey downgraded his rating on Cincinnati-based First Financial Bancorp.'s stock to "neutral" from "buy" on valuation.
The analyst kept First Financial's stock price target at $34. Reevey expects First Financial's net interest margin to expand by 19 basis points year over year to 3.85% in 2018.
Regarding First Financial's acquisition of MainSource Financial Group Inc., Reevey wrote that MainSource Financial's low-cost deposit franchise is "particularly valuable in a rising interest rate environment." The analyst also called the deal "geographically compelling," as it expands First Financial's coverage in the attractive markets of Cincinnati and Indianapolis and provides a significant presence in Louisville, Ky.
