UPDATE: D.A. Davidson Initiates Coverage on BancFirst Corporation with Neutral Rating, $48 PT

In a report published Friday, D.A. Davidson & Co. initiated coverage on BancFirst Corporation

with a Neutral rating and $48.00 price target. D.A. Davidson noted, “We believe that BANF's next leg up is largely dependent on a resurgence in loan growth and a more beneficial rate environment that can help support the company's net interest margin and generate growth in net interest income. Over the course of 2013-2014 we think BANF's ROE should remain solidly near 10%, owing to the company's strong fee income stream and low credit costs. Our price target of $48 represents a 1.5x multiple to our year-end 2013 TBV of $31.93 (1.6x 9/30/12 TBV), slightly above the 1.44x multiple the company is currently trading at on 9/30/12 TBV.” BancFirst Corporation closed on Thursday at $42.84.