UPDATE: J.P. Morgan Lowers PT on Washington Federal to $17 (WFSL)

J.P. Morgan is out with its report today on Washington Federal WFSL, lowering its PT from $18.50 to $17. In a note to clients, J.P. Morgan writes, "WFSL shares currently trade at 1.11x TBV, or a 26% discount to peers, as well as at 9.5x 2014E earning power, which represents a 5% discount to peers. We expect the discount valuation to peers to persist given that improved loan growth prospects are likely to coincide with incremental NIM pressure as well as TCE and TBV erosion, and we are reducing our price target from $18.50 to $17." J.P. Morgan maintains Neutral on WFSL. Shares of WFSL closed Thursday at $15.64.