Raymond James upgrades FirstSun Capital to 'outperform' after HomeStreet deal fails

Mechanics Bancorp

19/11/2024 15:30

** Raymond James upgrades regional lender FirstSun Capital
Bancorp  FSUN.O  to "outperform" from "market perform"; assigns
$42 price target, a 15.4% upside to stock's last close
    ** Brokerage says a standalone FSUN will be able to deliver
strong mid-to-high single-digit loan growth in coming years 
while improving its profitability profile
    ** Upgrade follow's announcement that FSUN and peer
HomeStreet  HMST.O  have mutually agreed to walk away from their
beleaguered buyout deal, Raymond James says, adding that it was
not a surprise given both companies were asked last month to
withdraw their merger applications
    ** Raymond James expects FSUN to possess a cleaner core
deposit base as a heavy commercial and industrial (C&I) bank
with a strong presence in high-growth markets
    ** FSUN should benefit from improved liquidity by being
added to the Russell 2000 index  .RUT  in 2025
    ** Stock up 7.1% YTD

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