Wunderlich: Buy 'Emerging Growth Story' Independent Bank Group

In a report published Wednesday, Wunderlich analysts initiated coverage of

with a Buy rating and a price target of $48. In the report Wunderlich noted, "IBTX is a high growth Texas community bank targeting small to mid-sized businesses that prefer dealing with locally focused decision makers. IBTX's strong performance over the past several years is in part a reflection of its fast growing Texas markets, but is also a testament to the company's ability to execute a market-share-moving strategy within the largest MSAs in Texas." Since 2009, Independent Bank has acquired eight smaller banks in Texas. While the company may not be "highly active" with acquisitions this year, the analysts believe there will be opportunities for accretive M&As over the next several years, in view of the "target rich environment in Texas." The EPS estimates for 2015 and 2016 have been established at $2.62 and $3.15, respectively. Independent Bank's stock is currently trading at a discount to its Southern peers, and the analysts believe that a premium valuation "is likely over time" in view of the company's profile of strong growth and above average profitability.