NEW YORK (TheStreet) -- Shares of Fifth Third Bancorp (FITB) are slumping 2.05% to $20.51 in Wednesday's midday trading after analysts at Robert W. Baird downgraded the financial services company today to "neutral" from "outperform" with a price target of $21.
The analyst firm cites a now-balanced risk-reward on the shares, noting that the move was a valuation call.
However, the company posted strong first quarter results, reporting revenue of $1.5 billion, or 44 cents per share, compared to revenue of $1.46 billion, or 36 cents per share in the same quarter last year. Overall, this was a 19% increase in profits.
The company was expected to post revenue of $1.45 billion, or 37 cents per share in the first quarter, according to analysts polled by Thomson Reuters.
For the current fiscal year, analysts at Thomson Reuters expect that Fifth Third Bancorp will post $1.67 per share.
TheStreet Ratings team rates FIFTH THIRD BANCORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FIFTH THIRD BANCORP (FITB) a BUY. This is driven by some important positives, 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, increase in net income, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."