Connect with us

Hi, what are you looking for?


Wedbush analyst says First Republic stock turmoil is not over just yet

first republic stock turmoil not over wedbush

Shares of First Republic Bank (NYSE: FRC) are down over 20% on Friday after a Wedbush Securities’ analyst turned super bearish on the regional players.

First Republic stock downgraded to neutral

Last night, a consortium of financial behemoths confirmed plans of injecting $30 billion into the commercial bank to deliver it from the ongoing turmoil.

Still, David Chiaverini downgraded First Republic stock today to “neutral” and said it could crash further to just $5.0 a share. His research note reads:

A distressed M&A sale could result in minimal, if any, residual value to common equity holders owing to FRC’s significant negative tangible book value after taking into account fair value marks on its loans and securities.

The bank stock has already lost more than 80% versus its year-to-date high.

S&P and Fitch recently cut FRC to junk

Anonymous sources had told Bloomberg earlier this week that the California-based bank was considering options, including a potential sale, which, as per Wedbush’s Chiaverini would be a positive for the sector at large but not so much for First Republic stock.

While it has an exceptionally strong reputation and franchise value as evidenced by its high NPS, we’re doubtful that valuation accorded to these factors would be enough to cover tangible book value shortfall on a FV basis.

Both S&P Global and Fitch recently slashed their respective ratings on First Republic Bank to junk as well. Remember that it’s the same bank that reported a 16.5% year-on-year growth in its quarterly revenue to $5.9 billion hardly two months ago.

The post Wedbush analyst says First Republic stock turmoil is not over just yet appeared first on Invezz.

You May Also Like


Mimiq, Inc is announcing today the launch of their new product, Mimiq Track, at CES as part of their latest product line to operate...


Genesis Trading, the cryptocurrency brokerage and lender that halted customer withdrawals in the aftermath of FTX collapse, believes it can sort out its financial...

Editor's Pick

If you haven’t been following the “Twitter Files” saga, the gist of it is that the US federal government routinely pressured pre-Musk Twitter, and...

Editor's Pick

On April 23, 1985, the Coca-Cola Company made one of the biggest mistakes in American business history: it changed the formula for Coca-Cola. Outraged...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023