UPDATE: Wunderlich Securities Initiates Coverage on Stonegate Bank with Buy Rating, $34 PT on FL Growth Story With Strong Profitability

In a report published Tuesday, Wunderlich Securities analyst Kevin Reynolds initiated coverage on

with a Buy rating and $34.00 price target. In the report, Wunderlich Securities noted, "We are initiating coverage of Stonegate Bank (SGBK) with a Buy rating and a 12- to 18-month price target of $34. We believe Stonegate is a high-quality bank that employs a relationship-based model, which is appropriate for the Florida MSAs where it operates. SGBK's strong performance through and since the credit crisis is a testament to its disciplined management team and its ability to achieve above-average growth and profitability by executing a market-share-moving strategy in some of Florida's largest MSAs. Although SGBK shares currently trade in line with Southern peers, we believe a premium valuation is likely over time, given Stonegate's strong growth profile and above-average profitability. Hence, we rate SGBK shares Buy with a $34 price target." Stonegate Bank closed on Monday at $28.50.