Cascade Bancorp (NASDAQ:CACB) was upgraded by equities researchers at DA Davidson from an “underperform” rating to a “neutral” rating in a research report issued on Monday, TheFlyOnTheWall.com reports. The firm currently has a $6.25 target price on the stock, up from their previous target price of $4.00. DA Davidson’s price target would indicate a potential upside of 4.69% from the stock’s previous close.
The analysts wrote, “With the DTA allowance recovery now a certainty, we value CACB as a franchise with more limited overhanging issues but still constricted earnings potential. The credit improvement and reduction of regulatory burden/cost is commendable, plus the recent pick-up in loan growth is encouraging. We are increasing our price target from $4 to $6.25, which equals ~1.5x our 2014 TBV estimate. This valuation improvement reflects continued efficiency and growth improvement, but also incorporates a growing takeout premium as overhangs are eliminated from this stock. Accordingly, we are raising our rating on CACB shares from Underperform to NEUTRAL.”
Shares of Cascade Bancorp (NASDAQ:CACB) traded up 0.18% during mid-day trading on Monday, hitting $5.981. Cascade Bancorp has a 52 week low of $4.58 and a 52 week high of $7.18. The stock’s 50-day moving average is currently $6.23. The company has a market cap of $284.4 million and a P/E ratio of 5.50.