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Raymond James initiates coverage of Enterprise Financial Services

Initiations

Raymond James analyst Daniel Cardenas initiated coverage of Clayton, Mo.-based Enterprise Financial Services Corp. with an "outperform" rating.

The analyst set the bank's price target at $48, with non-GAAP EPS estimates of $3.89 for 2019 and $4.11 for 2020.

"An emerging regional player, Enterprise Financial is a highly profitable, growth-oriented company with a well-diversified operating footprint and a predictable earnings model," Cardenas wrote in a note.

Cardenas wrote that the bank has a "growing toehold" in St. Louis and presence in other metro markets in the Midwest and Southwest. The bank has "an enviable record of growth," wrote Cardenas, pointing to the bank's strong showing in commercial and industrial loan growth. For the next two years, the analyst expects the bank to have loan growth in the high single digits.

The bank has completed two acquisitions in the last three years to expand its footprint, and Cardenas wrote that he expects acquisitions to remain part of the bank's growth strategy. "In addition to acquisitions, we expect the company to take advantage of disruption and dislocation in the marketplace to acquire high-quality bankers in the various markets across its footprint," Cardenas wrote.