UPDATE: DA Davidson Initiates Enterprise Financial Services at Buy on 2013 Growth Outlook
DA Davidson initiated coverage on Enterprise Financial Services Corporation (NASDAQ: EFSC) with a Buy rating and a $17.00 price target.
DA Davidson commented, "Enterprise Financial is a well-positioned C&I focused institution that is taking market share both organically and via acquisition. Growth opportunities exist with traditional bank customers and from fee income sources through the company's Wealth Management franchise. Our initial price target is $17, equal to 13.6x and 1.20x our 2014 EPS and TBV estimates. Assuming our 2014 core projections of a high single-digit ROE, clean credit outlook and continued growth, we view this valuation as appropriate. Our target projects nearly a 30% total return from current levels."
Enterprise Financial Services closed at $13.65 on Thursday.
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