UPDATE: Sterne Agee Upgrades Ameris Bancorp to Buy on Valuation
Sterne Agee raised its rating on Ameris Bancorp (NASDAQ: ABCB) from Neutral to Buy with a $14 price target.
Sterne Agee said, "We are increasing our rating to BUY (from Neutral) as we believe that ABCB's valuation of 114% of TBVPS and 9x our 2014E EPS of $1.30 (+$0.10) has upside to 12x, implying a price target of $14 per share (discounted @ 11%). The resumption in average loan growth (+6% Y/Y; +15% LQA) in 3Q12, the outsized EPS benefit from the cost rationalization initiative, and TARP redemption provide significantly more support for our 2013E-2014E EPS than existed before Friday."
Ameris Bancorp closed at $13.24 on Monday.
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