First Merchants price target lowered to $43 from $46 at Raymond James

Raymond James lowered the firm’s price target on First Merchants (FRME) to $43 from $46 and keeps an Outperform rating on the shares. First Merchants’ Q1 EPS beat on a lighter loan loss provision, while credit trends were solid and loan growth remained solid, but fees were pressured and net interest margin fell short of expectations as lower funding costs were offset by pressure to loan yields and a large day count adjustment, the analyst tells investors in a research note. The firm believes shares deserve to close the discount gap to peers given expectations for solid profitability, growth, and credit metrics to continue.