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* David George of Robert W. Baird & Co. raised Providence, R.I.-based Citizens Financial Group Inc.'s stock rating to "outperform" and set the price target at $45.
The analyst anticipates solid results from Citizens Financial Group over the next several quarters. The company's net interest margin expectations look reasonable, with the consensus assuming sequential NIM improvement of 3 basis points in the second quarter, according to George.
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* D.A. Davidson analyst Gary Tenner downgraded his rating on Los Angeles-based Hope Bancorp Inc.'s stock to "neutral" from "buy."
The analyst maintained Hope Bancorp's stock price target at $20.
Tenner wrote that, since closing its acquisition of Wilshire Bancorp Inc. in 2016, Hope Bancorp's core EPS earnings traction has been below his expectations, with 2017 core EPS flat at $1.21, and 2018 core EPS estimate at $1.49 with the benefits of tax reform.
Regarding his view on Hope Bancorp's M&A outlook, Tenner wrote: "While industry M&A may accelerate, we do not see [Hope Bancorp] as a seller, although there remains the potential for small acquisitions."
Initiation
* Andrew Liesch of Sandler O'Neill & Partners is now covering Chicago-based Byline Bancorp Inc.'s stock. He gave it a "hold" rating and a price target of $23.
The analyst wrote that Byline Bancorp is the result of a $207 million recapitalization of its predecessor, Metropolitan Bank, which experienced significant losses during the financial crisis. According to the analyst, Byline Bancorp's management focused on resolving problem loans and right-sizing the branch network and cost structure, among other things, during the first few years after the recapitalization.
"The clean-up of legacy assets and branch consolidation resulted in significant workout expenses, but with these efforts largely behind the company, [Byline Bancorp] is positioned to generate stronger profitability," Liesch wrote.
Dropped coverage
* B. Riley FBR's Steve Moss dropped coverage of Jacksonville, Fla.-based Atlantic Coast Financial Corp., following its acquisition by Ameris Bancorp.
