UPDATE: Sterne Agee Initiates Coverage On Opus Bank

In a note dated November 19, Sterne Agee analyst Matthew Clark initiated coverage of Opus Bank OPB with a Buy rating and a $33 price target.

Clark commented, "Opus is positioned as an industry-leading growth story trading at below-average multiples relative to West Coast peers and other high growth banks. We expect multiple expansion to occur as Opus delivers on growth with existing talent and infrastructure."

Looking forward, Clark said Opus should be able to grow its EPS 50-60 percent annually through 2016. In addition to this, he sees 48 percent and 46 percent net loan growth in 2014 and 2015, respectively. These assumptions have lead him to an expected EPS of $1.31 in 2014 and $2.05 in 2015.