Enterprise Financial Services "buy," target price raised

09/14/06 - Stifel Nicolaus

NEW YORK, September 14 (newratings.com) - Analysts at Stifel Nicolaus & Company reiterate their "buy" rating on Enterprise Financial Services Corp (EFSC). The target price has been raised from $30 to $35.

In a research note published this morning, the analysts mention that the company is still in a compelling growth phase, although the sector is expected to continue to face headwinds from a flat/inverted yield curve and competition. The analysts express their optimism regarding Enterprise Financial Services’ ability to meet the middle-market demands of the St. Louis/Kansas city markets, which have undergone significant consolidation over the last five years. The company is poised to generate an EPS growth rate of 17%-22% through 2010 via commercial banking and wealth management revenue growth, Stifel Nicolaus & Company adds.