Banner Corp. downgraded to Neutral at Janney following 40% rally

As previously reported, Janney Montgomery Scott analyst Timothy Coffey downgraded Banner Corp. to Neutral from Buy with a fair value estimate of $60, up from $53. The stock price appreciated nearly 40% since last reporting earnings in April and the firm believes the current valuation reflects the company’s prevailing level of profitability, but it argues that future earnings growth might not materially outperform current trends due to a variety of factors, including the view that spread income could be less than previously estimated due to further deposit disintermediation and that loan growth could be slower in the second half.