UPDATE: Hilliard Lyons Upgrades HopFed Bancorp to Long-Term Buy on Earnings, Capitalization Outlook

Hilliard Lyons raised its rating on HopFed Bancorp HFBC from Neutral to Long-term Buy with an $11 price target. Hilliard Lyons said, "Our more favorable view of the company is based largely on higher earnings due to financial engineering coupled with improving credit quality as opposed to growth. In order to sustain earnings momentum the bank will need to begin growing loans again, but at this junction we do not see that as necessary in order to push the stock price higher. Further, a strong capital position, could allow the board to raise the common dividend in the 2H13 if our favorable outlook prevails." HopFed Bancorp closed at $8.06 on Thursday.