UPDATE: Credit Suisse Initiates First Republic Bank at Outperform on Valuation, Growth

Credit Suisse initiated coverage on First Republic Bank

with an Outperform rating and a $42 price target. Credit Suisse said, "We are initiating coverage on First Republic with an Outperform rating based on relative valuation, outsized growth prospects and optionality as a potential seller. We believe FRC's niche focus on the jumbo mortgage to capture affluent relationships in coastal metro markets will continue to support high-double-digit, core-funded loan growth and more than offset margin pressure." First Republic Bank closed at $33.70 on Monday.