UPDATE: Bank of America Initiates Coverage on EverBank Financial

According to a research report published this morning, Bank of America has initiated EverBank Financial Corp.

with a Buy rating and $14 PO. In the report, Bank of America said, "EVER leverages a national on-line deposit platform to largely fund residential mortgage loans, with a mortgage banking operation. In our view, the low interest rate environment, along with HARP 2.0, has stoked a refinancing tailwind in the US. We believe valuation for most US regional bank stocks with material exposure to the mortgage market already reflects the refi boom. On the other hand, we believe EVER offers investors a discounted entry point to benefit from the mortgage tailwind. We establish our PO of $14 based upon a 1.2x 2012E TBV (vs. market multiple of 1.0x) and 11x blended 2012 and 2013 EPS (versus SMID cap peer market medians of 1.4x and 14.1x, respectively)." EverBank Financial closed Friday at $11.20.