UPDATE: DA Davidson Upgrades PacWest Bancorp to Buy on Risk Profile

DA Davidson raised its rating on PacWest Bancorp PACW from Neutral to Buy. DA Davidson commented, "PACW shares are off 15% from their 52-week high as the market may be discounting a lower probability of the company being successful in its bid to acquire First California Financial Group, Inc. (FCAL*-NEUTRAL-$6.93). While we think the transaction would be a clear positive, PACW shares have become more attractive on a standalone basis as the company's risk profile has declined, profitability has mproved, and management remains disciplined on pricing despite a particularly competitive environment. Our $27 price target represents a 13x multiple on our 2014 EPS estimate of $2.10." PacWest Bancorp closed at $21.84 on Wednesday.