Provident Financial price target lowered to $18 from $19 at RBC Capital

RBC Capital analyst Jon Arfstrom lowered the firm’s price target on Provident Financial to $18 from $19 and keeps an Outperform rating on the shares as part of a broader research note previewing Q1 results for Regional Banks. There continues to be a debate on how quickly the Fed will cut rates, but the firm believes that margins should trough in the first half of the year, which is positive for the revenue outlook, the analyst tells investors in a research note. RBC adds however that the management commentary suggests loan growth remains tepid, and the firm also believes that deposit balances in the sector will likely face some seasonal headwinds.