UPDATE: Wunderlich Securities Upgrades PacWest Bancorp to Buy on Accretive Acquisition
Wunderlich Securities raised its rating on PacWest Bancorp (NASDAQ: PACW) from Hold to Buy and increased its price target from $25 to $29.
Wunderlich Securities commented, "We are upgrading shares of PacWest Bancorp (PACW) to Buy from Hold, and we are raising our price target by $4 to $29 after the company announced the long-awaited acquisition of First California Financial Group (FCAL – NR) on November 6. Originally, PacWest announced its intention to acquire FCAL in May 2012, and after several months, the two companies finally agreed to terms with an expected closing in 1Q13. The combination will create the 8th largest financial institution headquartered in California and a leading commercial bank in Southern California. PACW trades at less than 11 times earnings with a 4.4% yield, representing an attractive entry point for long-term investors."
PacWest Bancorp closed at $22.41 on Tuesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.