UPDATE: Bank of America Initiates Coverage on SVB Financial Group on Continued Secular Growth Story

In a report published Wednesday, Bank of America analyst Ebrahim H. Poonawala initiated coverage on SVB Financial Group SIVB with a Buy rating and $110.00 price target. In the report, Bank of America noted, “We are initiating coverage on Santa Clara CA based Silicon Valley Bank (SIVB) with a Buy rating. Based in the heart of Silicon Valley, SIVB has established itself as the go-to lender for companies and professionals in the technology, life science, venture capital, private equity, and premium wine industries. SIVB has materially outperformed peers YTD given its above average EPS growth outlook and as investors increased exposure to names where EPS is most sensitive to rising interest rates. Although much of SIVB's EPS sensitivity to rates is tied to the short end of the curve, we expect valuations to continue to benefit in the run-up to an eventual rate tightening. Our $110 PO implies 2.3x YE14e TBV and 24x ‘14e EPS.” SVB Financial Group closed on Tuesday at $87.18.