UPDATE: FIG Partners Initiates Coverage on DNB Financial Corp. with Outperform Rating, $23 PT on Multiple Positive Factors

In a report published Monday, FIG Partners analyst Brian Martin initiated coverage on DNB Financial Corp. DNBF with an Outperform rating and $23.00 price target. In the report, FIG Partners noted, “We are initiating coverage on DNBF with an 'Outperform' rating and $23 Price Target or ~13x P/E on 2014 EPS or ~128% of forward Tangible Book Value. Our 2014 & 2015 EPS projections are $1.78 and $2.05, respectively. The franchise is highly attractive given its enviable footprint, Core Deposits (less than 17% of Deposits are CDs), clean credit quality, excellent expense controls and opportunity to remix the balance sheet and boost already solid EPS & profitability. In our view, the market does not yet fully recognize this combined potential at ~120% of TBV or a 2.2% core deposit premium. To date DNBF has not been active on the M&A front; however, with an improving currency and desire to add scale we suspect they may become more opportunistic prospectively which would likely add to earnings.” DNB Financial Corp.closed on Friday at $19.80.