UPDATE: Jefferies Raises Commerce Bancshares Target to $41

Jefferies reiterates its Buy rating on Commerce Bancshares

and raises its price target by $1 to $41 as current margin pressures company faces should lift in 2012. Jefferies says, "While the quarter exhibited continued margin pressure and higher than expected expenses, future earnings run-rates should hold in reasonably well as forward securities purchases act as a tailwind for interest income into 2012, and a good portion of higher than expected expenses roll-off. We are taking our 2012 EPS estimate to $2.90 (from $2.80), 2013 remains at $3.00." CBSH closed at $40.14 a share on Tuesday.