UPDATE: Stifel Nicolaus Raises PT to $28 on Berkshire Hills Bancorp on Fee Growth

Stifel Nicolaus reiterated its Buy rating on Berkshire Hills Bancorp

and raised the price target from $26.00 to $28.00. Stifel Nicolaus said, "We are increasing our target price to $28 from $26 per share to essentially reflect a higher expected tangible book value than previously expected. This target is derived from a three- prong matrix approach to our valuation methodology, which include P/E, an ROA-based price-to-tangible book value multiple and franchise value. In the case of valuing BHLB shares, we assume a 25% weighting on forward P/E ($29.70), a 50% weighting on ROA-based price-to-tangible book ($26.40), and a 25% weighting on franchise value ($28.50), implying a blended value of about $28.00 per share." Berkshire Hills Bancorp closed at $24.54 on Tuesday.