UPDATE: Keefe, Bruyette & Woods Upgrades Fidelity Southern Corporation to Outperform, Reiterates $16 PT Following 1Q14 Earnings Beat

In a report published Tuesday, Keefe, Bruyette & Woods analyst Brady Gailey upgraded the rating on

from Market Perform to Outperform, and reiterated the $16.00 price target. In the report, Keefe, Bruyette & Woods noted, “LION reported a 1Q14 earnings beat driven mostly by a negative provision as the LLR fell 11 bpts and there were no NCOs. Mortgage revenues declined 8% LQ, better than 4Q's 31% LQ decline. Noncovered loan balances fell 8% LQ as LION sold some HFI indirect auto in the qtr. Excluding this loan sale, loan growth would have been 3% LQA. LION doubled its qtrly cash dividend to 8c and now has a nice 2.3% yield. Modestly lowering EPS estimates on lower NIM/loan growth. $16 price target unchanged. Raising to Outperform on valuation.” Fidelity Southern Corporation closed on Monday at $13.97.