In a research note released Monday, D.A. Davidson & Co. analyst Gary P. Tenner upgraded CU Bancorp CUNB to Buy and set the price target at $22.00.
CU Bancorp is acquiring 1st Enterprise Bank for $103.4 million; D.A. Davidson believes that this adds scale and drives profitability metrics. The deal is a 100 percent stock transaction with FENB shareholders, who will be receiving 1.345 shares of CU Bancorp.
Additionally, the firm believes that cost savings will drive earnings per share accretion.
Shares of CU Bancorp are neutral at $1851 on Wednesday.
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