UPDATE: D.A. Davidson Upgrades S.Y. Bancorp

In a report published Friday, D.A. Davidson & Co. Stephen Geyen upgraded

to Buy from Neutral on valuation and solid fundamentals, dropping its price target from $36.00 to $35.00. According to the report, EPS estimates remain unchanged, however, price targets have been revised. The revised price target is due to a decline in the base peer P/E multiple and is not due to a change in company fundamentals. “We believe loan growth is likely to remain quite good driven by several factors,” the report noted. “First, management is differentiating SYBT as the hometown Louisville bank competing very effectively with the large banks on price and service. Second, loan growth is likely to improve at the bank's operations in Cincinnati and Indianapolis following recent hires in commercial lending. Third, the Louisville economy has benefited in recent years from significant hires at the two Ford (F - $15.84) plants, GE appliance (GE - $27.22) and UPS International Shipping (UPS - $102.12). Fourth, the $2.5 billion Ohio River Bridge Project between Indiana and Kentucky, expected to begin in 2014, should be a significant boost to jobs and the economy in the region.” SYBT closed Thursday at $29.87.