In a report published Thursday, D.A. Davidson & Co. analyst Jeff Rulis upgraded the rating on Heritage Financial Corporation HFWA from Neutral to Buy, and raised the price target from $16.50 to $19.00.
In the report, D.A. Davidson & Co. noted, “HFWA announced a merger agreement with Washington Banking Co. (WBCO–NEUTRAL–$14.25) for $265.1 million. WBCO shareholders will receive 0.89 shares of HFWA in addition to $2.75 in cash for each share of WBCO. The approximate deal value is $265.1 million, or $16.89 per share, and is expected to close in the first half of 2014. The deal value represents 1.49x WBCO's 9/30 TBV. The combination will create a $3.3 billion asset bank with a pro forma deposit market share rank of #3 among WA-based banks. We view Heritage and Washington Banking Co. as similarly operated institutions that should exploit the SW Washington/NW Oregon footprint of HFWA along with WBCO's NW Washington presence. Separately, the banks face daunting regulatory and leverage challenges; together, these threats are minimized and a nimble, yet substantial franchise should thrive.”
Heritage Financial Corporation closed on Wednesday at $15.89.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in