UPDATE: Hilliard Lyons Downgrades Summit State Bank to Neutral on Valuation

In a report published Monday, Hilliard Lyons analyst Ross A. Demmerle downgraded the rating on Summit State Bank (NASDAQ: SSBI) from Long-Term Buy to Neutral.

In the report, Demmerle noted, “Hilliard Lyons is lowering the rating on Summit State Bank from Long-term Buy to Neutral. The stock price exceeded our former $9 per share target price. Year to date the stock has appreciated 43.0% outperforming the 9.7% increase in the NASDAQ bank index. The stock has historically traded at a discount to peers with the group trading at an average 115% of tangible book value. Summit continues to trade at a discount although narrower in light of appreciation in the price. Until last week, the price had not closed above tangible book per share since October 2007. Hilliard Lyons believes the shares are fairly valued. Some investors may continue to find the stock attractive for its dividend and possible further price appreciation, especially if industry consolidation picks up.”

Summit State Bank closed on Friday at $9.65.