UPDATE: Stifel Nicolaus Upgrades MB Financial to Buy on Improved Profitability
Stifel Nicolaus upgraded MB Financial (NASDAQ: MBFI) from Hold to Buy and established a $25.00 price target.
Stifel Nicolaus noted, "After updating our forecast for 4Q results, we are raising our 2013 EPS estimate to $1.81 and our 2014 estimate increases to $1.85. We are upgrading MBFI shares to Buy with a $25 price target and adding the stock to the Stifel Select List. … In our view, the exceptional fee income growth, stable credit, moderate loan growth, very good capital ratios, and better than peer profitability strongly suggest an above peer multiple is appropriate. Furthermore, the changes in the revenue mix to fee income vs. spread income should drive higher franchise value and free up capital. Our $25 price target is 13.8x our 2013 EPS estimate and 153% of projected TBV."
MB Financial closed at $21.57 on Wednesday.
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