First Guaranty's Stock Downgraded: Sluggish Profitability And TCE Ratio Decline Raise Alarms
Portfolio Pulse from Lekha Gupta
Piper Sandler analyst Graham Dick downgraded First Guaranty Bancshares Inc (NASDAQ:FGBI) to Underweight from Neutral, lowering the price target to $9.50 from $12.00. The downgrade is due to continued pressure on the company's fundamentals, with core revenues down 18% Y/Y and core expenses up 12% Y/Y in Q3. The analyst also expressed concerns about late-cycle growth and a projected decline in the tangible common equity (TCE) ratio.
November 08, 2023 | 7:45 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
First Guaranty Bancshares has been downgraded by Piper Sandler due to concerns about its financial fundamentals and a projected decline in the TCE ratio.
The downgrade by Piper Sandler is based on concerns about the company's financial fundamentals, including a decline in core revenues and an increase in core expenses. The analyst also expressed concerns about late-cycle growth and a projected decline in the TCE ratio, which could negatively impact the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100