UPDATE: D.A. Davidson Initiates Coverage on FirstMerit Corporation with Neutral Rating, $21 PT on Mixed Factors

In a report published Friday, D.A. Davidson analyst Stephen Geyen initiated coverage on

with a Neutral rating and $21.00 price target. In the report, D.A. Davidson noted, “We are initiating coverage of FirstMerit Corporation with a NEUTRAL rating and a fair value estimate of $21. We believe management has some work ahead of it to upgrade Citizens' commercial lending to provide another leg to loan growth. That being said, initial signs are encouraging as progress appears to be following a similar script to the strategy used from 2006-2008 and during the expansion into Chicago from 2009-2010, when several key hires were made. Considering the uncertainty of growing fee income, hiring commercial lenders in new markets, and the premium multiple to peers, we believe shares are best suited to long term investors.” FirstMerit Corporation closed on Thursday at $19.01.