Greater Bay Bancorp was downgraded Tuesday by Sandler ONeill & Partners, with analysts saying the stock had become too pricey.
Chris Orgielewicz at Sandler reduced his rating to market perform, from outperform. Greater Bay is a phenomenal story, Mr. Orgielewicz said, but the stock prices are phenomenal too. He said the stock deserves a premium, but shares are already trading at 18 times Greater Bays 2001 earnings per share, which he expects to be $3.68. Greater Bay, a super-community bank based in Palo Alto, Calif., has $4.1 billion in assets and nine bank subsidiaries.