Citi says First Republic Bank (FRC) selloff an 'overreaction' to SVB problems

Citi analyst Arren Cyganovich reiterated a Neutral rating and $132.00 price target on First Republic Bank (NYSE: FRC).

The analyst believes that the selloff of FRC shares is likely an overreaction to news from peer SVB Financial Group (NASDAQ: SIVB) problems.

"Without knowing the extent of current deposit outflows (if any), it’s tough to say exactly how profitability would be impacted if FRC would have to fund with higher cost sources like FHLB advances."

"With still enough uncertainty in the near-term outlook, we would like to hear more from the company about their deposits trends QTD and an update on liquidity before we take any actions with the stock."

For an analyst ratings summary and ratings history on First Republic Bank click here. For more ratings news on First Republic Bank click here.

Shares of First Republic Bank closed at $81.76 yesterday.

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