UPDATE: Jefferies Upgrades First Republic Bank to Buy Following Accretive Deal
Jefferies raised its rating on First Republic Bank (NYSE: FRC) from Hold to Buy and increased its price target from $35 to $39.
Jefferies said, "We upgrade First Republic to Buy from Hold following the announcement of the Luminous Capital acquisition. The deal brings EPS accretion, compelling crosssell dynamics and improves FRC's revenue mix (stronger fee contribution). At 14x core 2013 EPS, FRC gets a premium to smid-cap peers, but a discount to other growth standouts (SBNY & SIVB at 15x 2013) despite similar EPS trajectories."
First Republic Bank closed at $33.70 on Tuesday.
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