Wunderlich Downgrading Pinnacle Financial Partners (NASDAQ)

Wunderlich Securities is downgrading shares of Pinnacle Financial Partners PNFP to Hold, but is raising its price target to $14 from $13. In a note sent to investors, Wunderlich writes, "We are downgrading shares of Pinnacle Financial Partners, Inc. (PNFP) to Hold from Buy, although we are adjusting our price target upward by $1 to $14. PNFP shares have increased 50% over the past three months and reflect a reasonable valuation at 1.4x our 2010 TBV/share estimate. We believe PNFP will improve profitability over the course of this credit cycle and continue to make progress resolving asset quality issues. However, such progress is largely discounted in the current share price, and lack of a near-term catalyst to drive shares meaningfully higher moves us to the sidelines seeking other investment alternatives in the bank sector with a more attractive risk/reward profile." Shares of PNFP gained 19 cents yesterday to close at $13.84, a gain of 1.4%.