Piper Sandler downgrades FB Financial to Neutral on lack of near-term upside

As previously reported, Piper Sandler downgraded FB Financial to Neutral from Overweight with a price target of $46, up from $41. The firm notes shares have traded up between 5%-8% as a better-than-expected margin drove the beat to its estimates – with contractual loan yields expanding more than the COIBDs for a third straight quarter. Piper has favored the FB story and management and now investors appear to be rewarding the bank for solid execution. That said, shares are up about 32% since Q1 earnings – a sharp move higher. Thus, it is difficult to see the near-term upside in the shares to drive incremental outperformance, Piper argues.