UPDATE: Wunderlich Securities Downgrades Pinnacle Financial Partners to Hold on Discounted Growth

In a report published Wednesday, Wunderlich Securities analyst Kevin Reynolds downgraded the rating on Pinnacle Financial Partners (NASDAQ: PNFP) from Buy to Hold, but reiterated the $26.00 price target.

In the report, Wunderlich Securities noted, “We are downgrading shares of Pinnacle Financial Partners (PNFP) to Hold from Buy as shares have achieved our 12 to 18 month price target of $26. We upgraded PNFP shares after the company reported much stronger than expected 1Q13 EPS on above consensus revenue fueled by strong organic loan growth and NIM expansion. Since then, PNFP shares have increased 20% (+38% year-to-date) and reflect a relatively full valuation at 2.1x TBV/share and roughly 15x our 2014 EPS estimate. Having fully recovered from the Great Recession, PNFP is the purest above average organic growth story among our Southern banks. However, we believe much of this above average growth is discounted in PNFP's current share price, hence our downgrade to Hold at this time.”

Pinnacle Financial Partners closed on Tuesday at $26.02.