UPDATE: Jefferies Initiates Oriental Financial Group at Buy on Valuation, Strategic Tailwinds

Jefferies initiated coverage on Oriental Financial Group

with a Buy rating and a $20.00 price target. Jefferies noted, "We believe there is more room to run in the shares, as the company trades a significant discount to mainland-based peers with a similar ROE profile, has better post-acquisition capital than expected, should beat guided ‘13 EPS, and has strategic tailwinds. While the market remains concerned about a difficult operating environment in Puerto Rico, we believe the company can still generate better than average returns." Oriental Financial Group closed at $14.81 on Thursday.