KBW upgrades Simmons First after cost-cut announcement
Regional lender Simmons First National's SFNC.O shares rose 2.5% to $23.49 premarket.
KBW upgraded SFNC to "outperform" from "market perform" and set a $26 price target, implying 13% upside to the last close.
The brokerage said last week's cost-cut moves open the door for further stock upside.
It added that the reinvestment potential paves the way for revenue and growth initiatives that will serve as forward catalysts.
"The expense announcement is a positive on its own, but doesn't tell the whole story as we believe the reinvested expenses firmly put SFNC on the offensive" - KBW.
Five of seven brokerages rate the stock "buy" or higher, one "hold" and one "sell"; median PT $26, according to LSEG data.
As of the last close, SFNC shares were up 21.6% year to date.
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