Will This Downgrade Hurt Fifth Third Bancorp (FITB) Stock Today?

Story updated at 10 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Fifth Third Bancorp (FITB) was downgraded to "market perform" from "outperform" by BMO Capital Friday.

Fifth Third fell -1.7% to $20.71 in morning trading.

The firm set a price target of $22 for the regional bank. BMO analysts Peter J. Winter, Lana Chan, and Oliver Brassard said Fifth Third is seeing some deterioration in core trends.

"Coming out of 1Q earnings, we feel that FITB's core trends are weaker than those of its regional bank peers, including weaker fee income and deterioration in credit quality for the second consecutive quarter," the analysts wrote. "In addition, FITB has experienced elevated levels of litigation reserve charges, which are negatively affecting expense trends and should continue in upcoming quarters."

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Separately, TheStreet Ratings team rates FIFTH THIRD BANCORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate FIFTH THIRD BANCORP (FITB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins, good cash flow from operations, notable return on equity and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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