UPDATE: Wunderlich Securities Downgrades Bank of the Ozarks to Hold, Reiterates $43 PT on Strong YTD Share Price, Full Valuation

In a report published Wednesday, Wunderlich Securities analyst Kevin Reynolds downgraded the rating on Bank of the Ozarks OZRK from Buy to Hold, but reiterated the $43.00 price target. In the report, Reynolds noted, “We are downgrading shares of Bank of the Ozarks (OZRK) to Hold from Buy as shares have exceeded our 12 to 18 month price target of $43. OZRK shares have increased almost 35% year-to-date and reflect a relatively full valuation at 3.2x TBV/share and roughly 15.5x our 2014 EPS estimate. With a profile of above-average organic growth and best-in-class profitability, OZRK is a high-performing bank that has abundant capital to also pursue opportunistic acquisitions in its current and target markets. We still like the OZRK story as the company is one of the best run and best performing banks in our research universe, and we would revisit the name at a cheaper entry point with a more attractive risk/reward profile.” Bank of the Ozarks closed on Tuesday at $44.36.