UPDATE: Bank of America Upgrades Synovus Financial to Buy on Share Pullback

In a report published Tuesday, Bank of America analyst Erika Penala upgraded the rating on Synovus Financial Corp.

from Neutral to Buy, and reiterated the $3.00 price target. In the report, Penala noted, “Bank stock valuations have re-rated materially as balance sheet strength has improved post-crisis. As such, we think remaining incremental upside could be in banks that are on the path to balance sheet de-risking, but whose progression lags peers. In this context, we find SNV, which trades at a 15% discount to forward TBV of $3, to be a classic ‘re-rate' story. We think there are two potential catalysts for a re-rate of SNV: 1) continued credit improvement; and 2) an exit from TARP, which is likely a 3Q13 event. Our PO remains $3 (15% potential upside), which assumes SNV is fairly valued at 1x forward TBV.” Synovus Financial Corp. closed on Monday at $2.61.