UPDATE: D.A. Davidson & Co. Reiterates on CVB Financial Corp. Following 3Q13 Review

In a report published Friday, D.A. Davidson & Co. analyst Gary P. Tenner reiterated a Neutral rating on

, and raised the price target from $14.00 to $16.00. In the report, D.A. Davidson & Co. noted, “Maintaining NEUTRAL rating and increasing price target from $14 to $16, representing a 2.2x multiple on 2014E TBV of $7.44 and 16.5x our revised 2014 EPS estimate of $0.96. Our price target multiples represent a premium to other institutions in our mid-cap coverage universe given CVBF's above peer profitability metrics. With an improvement in 3Q loan growth, we are more positive on the outlook for the company over the next 12-18 months. While the bank has not announced a transaction, we believe it is well-positioned to be a buyer given strong capital, low credit costs, and an improved stock currency. CVBF reported 3Q13 GAAP EPS of $0.23, including a $0.02 benefit from insurance reimbursements for legal costs. Excluding the benefit, EPS was $0.21, in line with our estimate (and the Street mean estimate). The quarter also included a larger than expected negative provision of $3.8 million (~$0.03). Higher bonus accruals offset a portion of the benefit of these two line items.” CVB Financial Corp. closed on Thursday at $14.51.