UPDATE: D.A. Davidson & Co. Upgrades PacWest Bancorp to Buy, Raises PT Following CSE Deal Close

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

from Neutral to Buy, and raised the price target from $45.00 to $47.00. In the report, D.A. Davidson & Co. noted, “With the CSE deal closing earlier this quarter and the systems conversion, branch consolidation completed shortly thereafter, we believe PACW is now open to consider additional acquisition opportunities in the Western U.S. that 1) take advantage of its strong currency, and 2) accelerate the turnover of approximately $4 billion in higher cost CSE deposits. Whereas the company has historically been more focused on in-market transactions with high-cost saving opportunities, management is now focused on larger ($2-$5 billion) banks with low loan-to-deposit ratios. That specificity of target translates into a near certainty that at least some future transactions occur away from PACW's legacy southern California market, with some out of state transactions likely over time.” PacWest Bancorp closed on Friday at $40.30.