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D.A. Davidson: Lakeland Financial Deserves To Trade At A Premium To Its Peers

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D.A. Davidson: Lakeland Financial Deserves To Trade At A Premium To Its Peers

D.A. Davidson’s Kevin K. Reevey believes Lakeland Financial Corporation (NASDAQ: LKFN) deserves to trade at a premium to peers, given the company’s consistently above-average profitability, leading position across some of Indiana’s most attractive markets and robust credit quality.

Reevey initiated coverage of the company with a Neutral rating and price target of $51.

High Performing Company

“The management team of LKFN has a built a high performing full service relationship oriented community bank catering to the banking and financial needs of businesses and individuals in its markets,” the analyst mentioned.

Related Link: D.A. Davidson Says First Merchants Trading At 11% Discount To Its Peers

Reevey believes Lakeland Financial will continue to deliver ROA and ROE of more that 1.20 percent and 12.0 percent, respectively, driven by “thoughtful and deliberate” organic growth, “laser” focus on client needs and building long term customer relationships.

Well Positioned

According to the D.A. Davidson report, “Lakeland Financial is one of the top five players in some of the Hoosier state’s best markets, which include Fort Wayne, Warsaw, Elkhart and Indianapolis.”

Population growth in these markets is expected to be among the fastest in Indiana over the next five years.

The leading industries in Fort Wayne are manufacturing and healthcare, while in Warsaw, the orthopedic and medical device sectors are likely to be the key economic growth engines.

In addition, Elkhart is expected to continue to attract suppliers and manufacturers.

“Given LKFN’s market leadership position in these markets, we believe the company is well positioned to capitalize on these trends,” the analyst added.

Full ratings data available on Benzinga Pro.

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Latest Ratings for LKFN

DateFirmActionFromTo
Aug 2016Keefe Bruyette & WoodsMaintainsMarket Perform
Jul 2016Keefe Bruyette & WoodsMaintainsMarket Perform
Jul 2016DA DavidsonInitiates Coverage onNeutral

View More Analyst Ratings for LKFN
View the Latest Analyst Ratings

Posted-In: D.A. Davidson Kevin K. ReeveyAnalyst Color Price Target Initiation Analyst Ratings

 

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