UPDATE: DA Davidson Initiates Commerce Bancshares at Buy on Performance and Stability

DA Davidson initiated coverage on Commerce Bancshares

with a Buy rating and a $42.00 price target. DA Davidson noted, "Commerce has maintained stability over the last decade that few peers could match – even more impressive when considering the bank's solid performance record extends back nearly 1½ centuries. Family-driven cultural values have produced a uniquely secure franchise in an otherwise volatile banking industry, with a footprint seeing more limited economic risk than other regions. Additionally, a long-term commitment to supporting retail products serves the bank well in providing a balanced revenue mix. We are establishing an initial target of $42. This equals 13.5x and ~1.55x our 2014 EPS and TBV estimates; valuation levels that are well short of historical peaks but justified by expected performance levels." Commerce Bancshares closed at $36.95 on Thursday.