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UPDATE 1-Analysts upgrade First Financial Bancorp on FDIC deal

Tue Sep 22, 2009 11:58am EDT

Stocks

   

Sept 22 (Reuters) - At least two brokerages upgraded shares of First Financial Bancorp (FFBC.O), citing the bank's Federal Deposit Insurance Corp-backed deal to assume the deposits of Irwin Financial Corp's IFC.N two units.

Shares of Cincinnati-based First Financial were trading up 18 percent at $12.13 in Tuesday morning trade on Nasdaq.

Sandler O'Neill analyst Scott Siefers upgraded the stock to "buy" from "hold," while Raymond James analyst Dennis Klaeser raised his rating to "strong buy" from "outperform."

"The deal will bring First Financial into the top ten in deposit market share in Indiana," said Siefers, who called it a "game changer" for the bank.

Siefers said he was comfortable upgrading the stock even after its gains on Monday, when it rose as much as 25 percent.

The analyst raised his fiscal 2009 earnings estimate by 16 cents to 50 cents a share to reflect the anticipated impact of the deal.

Raymond James analyst Klaeser, who raised his price target on the stock by 50 percent to $15, said the deal would be strongly accretive to the company's earnings.

(Reporting by Abhinav Sharma in Bangalore; Editing by Anne Pallivathuckal)

((abhinav.sharma@thomsonreuters.com; within U.S +1 646 223 8780; Outside U.S +91 080 4135 5800; Reuters messaging: abhinav.sharma.thomsonreuters.com@reuters.net)) Keywords: FIRSTFINANCIALBANCORP/RESEARCH SANDLERO'NEILL

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