UPDATE: D.A. Davidson Upgrades Cascade Bancorp to Neutral, Raises PT Ahead of DTA Allowance Recovery

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In a report published Monday, D.A. Davidson analyst Jeff Rulis upgraded the rating on
Cascade BancorpCACB
from Underperform to Neutral, and raised the price target from $4.00 to $6.25. In the report, D.A. Davidson noted, “With the DTA allowance recovery now a certainty, we value CACB as a franchise with more limited overhanging issues but still constricted earnings potential. The credit improvement and reduction of regulatory burden/cost is commendable, plus the recent pick-up in loan growth is encouraging. We are increasing our price target from $4 to $6.25, which equals ~1.5x our 2014 TBV estimate. This valuation improvement reflects continued efficiency and growth improvement, but also incorporates a growing takeout premium as overhangs are eliminated from this stock. Accordingly, we are raising our rating on CACB shares from Underperform to NEUTRAL.” Cascade Bancorp closed on Friday at $5.97.
Posted In: Analyst ColorUpgradesAnalyst RatingsD.A. DavidsonJeff Rulis
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