UPDATE: DA Davidson & Co Upgrades Deluxe Corporation to Buy

DA Davidson & Co raises its rating on Deluxe Corporation DLX from Neutral to Buy on valuation that now appears attractive and likely catalysts. The price target of $26 is unchanged. DA Davidson & Co says, "DLX shares have fallen nearly 20% since peaking in early February following the company's solid Q4 2011 results. As the shares diverged from market indices, we believe the company has been strengthening its fundamental market position. ..DLX has recently responded to at least three larger RFPs. All three would be competitive takeaways and are not included in the company's 2012 guidance. Given competitor Harland Clarke's distractions, we think the chances are good. Results could be announced anytime, and winning any one would likely result in increasing estimates." DLX closed at $21.51 a share on Tuesday.