First Republic reinstated with Sell from Neutral at Citi

Citi analyst Arren Cyganovich downgraded First Republic to Sell from Neutral with an $11 price target after reinstating coverage of the shares. The bank lost over $100B of deposits in Q1 excluding the $30B it received from the large banks, the analyst tells investors in a research note. The firm says First Republic’s high cost of borrowings relative to its earnings assets puts it "under-water" and likely generates losses until it can "right-size" the balance sheet.