First Busey falls as Stephens downgrades after CrossFirst deal

First Busey

14/10/2024 15:41

** Shares of regional lender First Busey  BUSE.O  fall as
much as 4% in early trading, last down 2.1% at $24.73
    ** Stephens downgrades rating on BUSE to "equal-weight" from
"overweight," citing investor sentiment around the bank's $917
mln deal to buy smaller rival CrossFirst Bankshares  CFB.O 
    ** Brokerage says investor feedback following an acquisition
announcement tends to be mixed, adding that in the case of
BUSE's deal with CFB, the response has been "decidely cautious"
at best
    ** Stephens notes the deal has high integration risk from
differing strategies at the two banks, adding that the deal will
also hit BUSE's earnings
    ** Given investor sentiment, BUSE has become a more
"wait-and-see" story with limited catalysts over the next year -
Stephens
    ** Four of six brokerages rate the stock "buy" or higher and
two "hold"; median PT is $31.50 - LSEG data
    ** As of last close, BUSE shares up 1.8% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))