UPDATE: D.A. Davidson & Co. Downgrades The Bank of Kentucky Financial on Valuation

In a report published Monday, D.A. Davidson & Co. analyst Stephen Geyen downgraded the rating on

from Buy to Neutral, but raised the price target from $35.00 to $36.00. In the report, D.A. Davidson & Co. noted, “We are reducing our rating of Bank of Kentucky to NEUTRAL from Buy based on valuation. We note that our rating change does not suggest a change in our outlook on the bank. In fact, we believe fundamentals remain exceptionally good. BKYF has competed exceptionally well with the regional and super regional banks in the Cincinnati area through a highly skilled commercial lending team with experience at the larger banks. During periods of slow economic growth, loan growth has the potential to be choppy quarter to quarter; however, the bank has demonstrated the wherewithal to generate loan growth in the low double digits. Despite the bank's relative small size, profitability has been better than its larger peers due to a history of low credit costs. We note that 3Q13 ROA increased to 1.22% and the ROTE increased to 14.6%.” The Bank of Kentucky Financial closed on Friday at $33.84.