UPDATE: Stifel Nicolaus Raises PT to $14 on Cardinal Financial Corporation on Mortgage-Driven Upside

Stifel Nicolaus reiterated its Buy rating on Cardinal Financial Corporation (NASDAQ: CFNL) and raised its price target from $13 to $14.

Stifel Nicolaus commented, "FY12E gaps materially higher to $1.20 from $0.97 (+24%) primarily on raised mortgage banking in addition to a raised earning asset forecast (HFI and HFS driven) that more than offsets a lowered FY12 NIM outlook to 3.55% from 3.66%. FY13E also gaps materially higher to $1.02 from $0.90 (+13%) also predominantly on mortgage banking followed by a raised spread forecast that is loan driven that offsets lowered projected NIM. Importantly, elevated other low yielding asset deployment could serve as a lever to show higher NIM."

Cardinal Financial Corporation closed at $13.00 on Wednesday.

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