UPDATE: Raymond James Reiterates On The Bancorp On Attractive Risk/Reward Proposition

In a report published Thursday, Raymond James analyst William J. Wallace IV reiterated an Outperform rating on

, but lowered the price target from $18.00 to $14.00. In the report, Raymond James noted, “We are reiterating our Outperform rating but lowering our target price to $14 from $18 on The Bancorp following its disclosure that its subsidiary bank has been placed under a consent order by the FDIC that restricts some aspects of its business, most notably its general purpose reloadable (GPR) prepaid card business. "Ultimately, we believe the financial impact will be very manageable as the prepaid business should remain a mid- to high-teen growth business despite the cap on growth in the GPR business, which we believe represented roughly one-third of the prepaid revenue in 2013. The stock sold off significantly on the news as we believe many investors (and analysts) threw in the towel on what has been a very frustrating year following 1Q14 results that were marred by significantly higher than expected credit costs with limited commentary from management around steps to address credit issues. "With the consent order essentially adding insult to injury for existing investors, we believe many decided that enough was enough and sold on the news. While we have been wrong on the stock this year, we believe the risk/reward proposition is attractive at current levels as pricing reflects a very draconian outlook on both the credit and revenue/expense management fronts, in our view.” The Bancorp closed on Wednesday at $11.54.