CapStar Financial cut to Neutral at DA Davidson after Q4 earnings miss

As previously reported, DA Davidson analyst Kevin Fitzsimmons downgraded CapStar Financial to Neutral from Buy with a price target of $18.50, down from $19. The analyst cites the company’s Q4 earnings miss along with its "more challenging" outlook for net interest income and net interest margins. All banks are facing funding pressures, but CapStar Financial was hit a bit harder, and the headwinds could carry into the first half of 2023, the firm tells investors in a research note.