UPDATE: D.A. Davidson Initiates Coverage On Bofl Holding On Branchless Bank Model

In a report published Monday, D.A. Davidson analyst Gary P. Tenner initiated coverage on

with a Buy rating and $112.00 price target. In the report, D.A. Davidson noted, "Differentiated branchless model produces outsized returns. BOFI's internet-only orientation allows the company to drive a high level of its revenue to the bottom line, evidenced by its sub-35% efficiency ratio through the first half of fiscal 2015 despite a relatively high 89bp cost of total deposits. We expect efficiency to remain near this level even as the company continues to invest in talent and technology going forward." Bofl Holding closed on Friday at $90.32.