UPDATE: D.A. Davidson & Co. Reiterates Neutral Rating, Raises PT on BancFirst Corporation as Loan Growth Strengthens on Improved C&I Production

In a report published Monday, D.A. Davidson & Co. analyst Gary P. Tenner reiterated a Neutral rating on

, and raised the price target from $52.00 to $60.00. In the report, D.A. Davidson & Co. noted, “Maintaining NEUTRAL rating and increasing price target to $60. Our target increase from $52 reflects modestly improved loan growth, the strength of BANF's deposit franchise, and overall expansion of bank sector valuation multiples. Our $60 price target is 1.7x estimated 2014 TBV, in line with the median TBV multiple of our small-cap bank universe. BANF reported average annualized loan growth of 6%; an improvement over recent periods. Loan growth was driven by a greater emphasis on C&I loans, which the company is willing to book at lower rates given the floating rate characteristic. The bulk of loan demand for BANF continues to come in the CRE segment, where pricing competition for fixed rate loans remains high and BANF is less willing to reduce pricing to the level of other institutions.” BancFirst Corporation closed on Friday at $55.66.