UPDATE: Sterne Agee Initiates Buy On Merchant Bancshares On Undervalued Shares

In a report published Wednesday, Sterne Agee analyst Matthew Breese initiated a Buy rating on Merchants Bancshares MBVT and established a price target of $36.00. In the report, Sterne Agee says "Given best-in-class fundamentals and a solid earnings outlook, we believe shares of Merchants Bancshares appear undervalued. As a result, we are initiating coverage with a Buy rating and $36 price target. Our rating is based upon our belief that at current levels there appears to be an asymmetric risk/reward in the stock's price. Over the next 12-18 months, we believe shares should appreciate by ~18%-20% to levels more in line with high-earning small-cap peers." Merchants Bancshares closed on Tuesday at $30.53.