Citing the regional bank being fairly value and reaching their price target, Standpoint Research downgraded City Holding (NASDAQ:CHCO) from "Buy" to "Hold."
Standpoint says, "West Virginia/Kentucky/Ohio regional bank CHCO has jumped 27% since our February 9, 2010 recommendation. The shares have out-performed the S&P-500 (and the XLF) by 1000 bps for us and are now fairly valued at a two-year high, 1.8X book value and 15X estimates for next year. We expect the shares to track the market going forward. It should be noted that good news from this company could trigger a short squeeze in this very illiquid name that would send the stock price towards the all-time high of $47 from Q3, 2008. CHCO has hit our price target ($38); we can no longer leave our highest recommendation attached to this name."
City Holding closed Monday at $37.50, gaining $0.03, or 0.08 percent.
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