UPDATE: D.A. Davidson Reiterates Neutral Rating, Raises PT on PrivateBancorp on 2Q13 Earnings Outlook

In a report published Friday, D.A. Davidson analyst Stephen Geyen reiterated a Neutral rating on PrivateBancorp (NASDAQ: PVTB), and raised the price target to $25.00.In the report, D.A. Davidson noted, “Some pieces need to fall into place for improved profitability, in our view. Most significant is higher loan growth and higher short term rates. We believe the upside to our EPS estimates is quite substantial once short term rates begin to rise. Variable rate loans are 94% of total and 63% of loans are tied to 30-day LIBOR. If investors are looking to build positions in bank stocks ahead of a rise in short term rates, this is one of the quintessential bank stocks in which to do it. Based on the rough interest rate sensitivity assumptions provided by management, our 2014 EPS estimates could increase 17% assuming a 100bp parallel shift up in the yield curve.”PrivateBancorp closed on Thursday at $23.50.