OceanFirst slips after Raymond James downgrades to 'market perform'

Regional lender OceanFirst Financial's OCFC.O shares fall 1.1% to $18.08

Raymond James downgrades OCFC to "market perform" from "strong buy" following its planned acquisition of smaller rival Flushing Financial FFIC.O

OCFC stock slipped 6.7% on Tuesday after the bank unveiled the acquisition and a $225 million capital infusion

Brokerage says acquisition significantly slows OCFC's shift to a commercial and industrial loans lender, which was the primary catalyst for its prior rating

Deal lessens likelihood of OCFC being a seller in the intermediate term, while stock warrants issued with the acquisition-related capital raise will also be an incremental headwind to share appreciation, Raymond James says

Three of six brokerages rate the stock "buy" or higher and three "hold"; median PT $22 - data compiled by LSEG

As of last close, OCFC shares up 1% YTD