UPDATE: D.A. Davidson Initiates Coverage on First Merchants as Acquisitions, Organic Growth Drive Positive Outlook
In a report published Thursday, D.A. Davidson & Co. analyst Stephen Geyen initiated coverage on First Merchants Corporation (NASDAQ: FRME) with a Buy rating and $22.00 price target.
In the report, D.A. Davidson & Co. noted, “While not without risk, we think FRME's acquisition strategy can successfully generate improved returns over time. Given the uncertainties inherent in the company's model, most notably the unknown timing, magnitude, and financial impact of the most recently announced acquisition and additional merger/expansion transactions, we think FRME shares are most suitable for long-term oriented investors but believe the discount to peers represents a favorable risk/reward. Our $22 price target is 14x our 2014 EPS estimates of $1.58.”
First Merchants Corporation closed on Wednesday at $17.30.
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