M&T Bank downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded M&T Bank to Neutral from Overweight with a price target of $223.50, up from $215, after assuming coverage of the name. The firm views M&T’s earnings outlook as solid, with a large benefit in 2025 from roll off of receive fixed swaps driving sizable uplift to net interest income. However, it expects the bank’s office commercial real estate exposure and relatively lower loan loss reserves to remain a headwind. M&T’s valuation has improved to a little above its historical average premium to peers, and there isn’t a catalyst for continued outperformance, contends JPMorgan.