Story updates at 10 a.m. to reflect market activity.
Pinnacle Financial Parnters gained 0.2% to $36.95 in morning trading.
The firm maintained its $37 price target for the regional bank. The downgrade was a valuation call as the stock has increased 33% in the past six months.
"PNFP is the premier commercial bank in the Nashville MSA, with a market-share-moving strategy that supports above-average organic growth and very high levels of both customer and employee satisfaction and retention," analyst Kevin Reynolds wrote. "Over the past six months, PNFP shares have increased about 33% (+14% year-to-date) easily outperforming the average increase of 23% for WSI Southern Banks and 16% for the NASDAQ Bank Index over this same period. PNFP's performance suggests a premium valuation is warranted; however, the current 10% to 15% premium on 2015E EPS appears reasonable, limiting potential upside in the near-term, hence our downgrade to Hold at this time."
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Separately, TheStreet Ratings team rates PINNACLE FINL PARTNERS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PINNACLE FINL PARTNERS INC (PNFP) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."