Provident Financial upgraded to Buy from Neutral at DA Davidson

DA Davidson upgraded Provident Financial (PFS) to Buy from Neutral with a price target of $20, up from $15. With its Lakeland (LBAI) deal now approved, Provident becomes “an attractive, above-peer return bank trading at a too low” multiple to its tangible book value, the analyst tells investors. The firm believes it is hard to invest in liability sensitive banks without a non-rate catalyst, but Provident now has that profitability catalyst with an earnings “bridge” from deal accretion and cost saves until a better rate environment, the analyst added.