First Interstate downgraded to Market Perform from Outperform at Keefe Bruyette

Keefe Bruyette analyst Christopher McGratty downgraded First Interstate BancSystem to Market Perform from Outperform with a price target of $38, down from $49, following the “thesis-changing quarter.” A sharply lower earnings outlook ends a nine-month period of rising earnings estimates and an improving valuation, the analyst tells investors in a research note. First Interstate’s 5.6% dividend yield and potential for a buyback could provide some support, but it is not enough “in an increasingly uncertain environment,” Keefe contends.