TSC Ratings' Updates: Goldman Sachs

BancorpSouth (BXS Quote) operates as a financial holding company for BancorpSouth Bank, has been downgraded to hold. The bank provides commercial banking and financial services to individuals and small and medium sized businesses.

Its net income increased by 4.7% when compared to the same quarter one year prior, rising from $33.58 million to $35.15 million. BancorpSouth's revenue growth trails the industry average of 22%. Since the same quarter one year prior, revenue increased by 4.5%. This can be construed as a modest strength in the organization.

BancorpSouth has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500. BancorpSouth's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 28.5%, which is also worse that the performance of the S&P 500.

Based on its current price in relation to its earnings, BancorpSouth is still more expensive than most of the other companies in its industry. Net operating cash flow has significantly decreased to $14.91 million, or 83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. BancorpSouth had been rated a hold since June 2006.

Next up is FirstMerit (FMER Quote), which has been downgraded to hold. FirstMerit operates as the holding company of FirstMerit Bank, which provides a range of banking, fiduciary, financial, insurance and investment services to corporate, institutional and individual customers in northern and central Ohio and western Pennsylvania.