Bank OZK slumps after Citigroup downgrade; regional banks fall
29/05/2024 15:53
(Updates)
** Shares of regional lender Bank OZK OZK.O drop 14.5% to
$39.50
** Other regional lender also fall in a broadly weak market
.N ; Among individual movers Banc of California BANC.N ,
Western Alliance Bancorp WAL.N , Valley National Bancorp
VLY.O , Regions Financial RF.N , Keycorp KEY.N and Comerica
CMA.N fall between 4.6% and 2.4%
** M&T Bank MTB.N , Fifth Third Bancorp FITB.O ,
Citizens Financial CFG.N , Truist Financial TFC.N , Synchrony
Financial SYF.N and Zions Bancorporation ZION.O fall between
2.9% and 1.5%
** Citigroup double downgrades stock to "sell" from "buy" on
concerns with OZK's projects and its life science construction
lending in general
** Co's Research and Development District project in San
Diego has been tenant-less for four years as sizeable
pharmaceuticals rejected it due to location, indicative of
difficult life science construction lending market - Citi
** Believes OZK's Atlanta project to be its biggest
individual loan totaling $915 mln; loan likely to see some
deterioration in coming quarters as lackluster location and
large-scale leases drive lack of interest in office leasing
** Citi cuts PT on stock to $37 from $57; new PT a downside
of about 20% to last close
** Four brokerages maintain "buy" or higher rating, five
rate it "hold" and one "sell"; median PT at $49.50 - LSEG data
** Including sessions move, OZK down ~21% YTD
(Reporting by Purvi Agarwal and Pritam Biswas in Bengaluru)
((Purvi.Agarwal@thomsonreuters.com))