NEW YORK ( TheStreet) -- A prominent bank analyst downgraded Huntington Bancshares ( HBAN - Get Report) and Synovus Financial ( SNV - Get Report) saying that Huntington was fully valued and that the upside for Synovus in a takeout scenario is "more modest than current investor sentiment believes." Shares of Huntington were down 2% to $7.42 and Synovus was down 3% to $2.80 in afternoon trading. Bank of America ( BAC) analyst L. Erika Penala said in a report that "the banking industry is in the early stages of a material consolidation cycle," and although "takeout potential should be a factor for consideration in stock selection," her group's analysis "suggests that actual upside in a deal (11% at median) is more modest than current investor sentiment believes." The downgrade of Synovus was particularly harsh, going straight from a buy to "underperform," or sell, saying that the shares "already appear to be fully reflecting potential takeover value," along with Associated Banc-Corp ( ASBC) and Bank of Hawaii ( BOH - Get Report). According to Penala's analysis, Synovus's takeout price would be $2.62, or a 9% discount to Wednesday's closing price of $2.89, while the takeout price for Associated Banc-Corp would be $14.02, or a 6% discount to Wednesday's closing price of $14.88. For Bank of Hawaii, the takeout price listed in the report was Wednesday's closing price of $47.57. While Penala suggested that Huntington Bancshares would command a 13% premium in a takeout scenario, the shares were downgraded because "HBAN screens as one of the least probable takeout candidates" among banks covered by Penala, and is fairly valued "from a standalone EPS power perspective." Other bank holding companies that would cost potential acquirers a premium according to the report include First Horizon National ( FHN - Get Report), which Penala said would go for a 33% premium and Zions Bancorporation ( ZION - Get Report), which would command a 15% premium. -- Written by Philip van Doorn in Jupiter, Fla. To contact the writer, click here: Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn. To submit a news tip, send an email to: firstname.lastname@example.org.