Five Star price target lowered to $35 from $38 at Raymond James

Raymond James lowered the firm’s price target on Five Star (FSBC) to $35 from $38 and keeps an Outperform rating on the shares, citing lower industry valuations. Five Star’s quarterly results were solid, and the bank’s organic growth prospects remain on track as originations improved quarter over quarter, though payoffs and paydowns masked the underlying strength, the analyst tells investors in a research note. The firm forecasts the bank sustaining a 1.4% Return on Average Assets and mid-teens Return on Average Tangible Common Equity going forward, translating into high-single digit tangible book value growth and high-teens to low-20% pre-provision net revenue growth.