UPDATE: D.A. Davidson & Co. Reiterates Neutral Rating, Raises PT on City National Corporation Following 3Q13 Review

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

, and raised the price target from $67.00 to $75.00. In the report, D.A. Davidson & Co. noted, “Maintaining NEUTRAL and raising price target from $67 to $75. Our new target is equivalent to 2x 2014E TBV, 18x our revised 2014 EPS estimate of $4.21, and 16.5x 2015E of $4.53. Price target multiples are above the median for our mid-cap universe given CYN's rate of loan and deposit growth, franchise value, and asset sensitive balance sheet. In our opinion the market is beginning to discount a more normalized rate environment via expanded bank P/E multiples, and CYN's positioning is reflected in our increased price target. CYN reported 3Q13 EPS of $1.10, or $1.00 excluding $8.7 million in securities gains and asset dispositions. Core EPS of $1.00 was $0.05 below our estimate and in line with the Street mean. Spread income was above our estimate due to higher yields within the covered loan portfolio, which drove the GAAP NIM up 6bp to 3.30%.” City National Corporation closed on Thursday at $69.45.