Wedbush analyst says First Republic stock turmoil is not over just yet

Shares of First Republic Bank (NYSE: FRC) are down over 20% on Friday after a Wedbush Securities’ analyst turned super bearish on the regional players.

First Republic stock downgraded to neutral

Last night, a consortium of financial behemoths confirmed plans of injecting $30 billion into the commercial bank to deliver it from the ongoing turmoil.

Still, David Chiaverini downgraded First Republic stock today to “neutral” and said it could crash further to just $5.0 a share. His research note reads:

The bank stock has already lost more than 80% versus its year-to-date high.

S&P and Fitch recently cut FRC to junk

Anonymous sources had told Bloomberg earlier this week that the California-based bank was considering options, including a potential sale, which, as per Wedbush’s Chiaverini would be a positive for the sector at large but not so much for First Republic stock.

Both S&P Global and Fitch recently slashed their respective ratings on First Republic Bank to junk as well. Remember that it’s the same bank that reported a 16.5% year-on-year growth in its quarterly revenue to $5.9 billion hardly two months ago.