The outlook for First Republic is still highly uncertain, said Morgan Stanley, which has an underweight rating and no formal price target on the bank.
First Republic 's stock is unlikely to see a significant rebound after the regional bank suffered major outflows of deposits, according to Morgan Stanley. Shares of the San Francisco-based lender were under pressure again on Monday , with the stock falling below $20 per share in early trading. The stock was trading near $115 per share before troubles emerged at the now failed Silicon Valley Bank, sparking a sell-off in regional bank stocks.
52, and using an 8x multiple and discounting by one year at a discount rate of 10%, results in a price of $11," the note said. The collapse of Silicon Valley Bank appeared to spur depositors with more than the insured maximum of $250,000 to pull money out of regional banks. Based on borrowing from the Federal Reserve that First Republic disclosed last week, deposit outflows at First Republic may have been roughly $86 billion, Morgan Stanley estimated.
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