UPDATE: Stifel Nicolaus Upgrades Union First Market Bankshares to Buy on Risk/Reward

Stifel Nicolaus raised its rating on Union First Market Bankshares UBSH from Hold to Buy and established a $16.50 price target. Stifel Nicolaus noted, "We are upgrading shares of Union First Market Bankshares Corporation (UBSH) to Buy from Hold and are establishing a $16.50 target price that is based on our discounted earnings model output that projects a future earnings stream through FY14 and a derived terminal multiple, both at 11.5%. We use a 4% sustainable growth rate. Potential upside from current levels totals approximately 17.7% inclusive of a $0.48 (3.3%) annual dividend. … While we are very aware of the challenging interest rate environment and the view that a lack of a change in Administration is perceived negatively for the banking sector, the risk/reward has become too compelling and thus we move to Buy." Union First Market Bankshares closed at $14.43 on Friday.