Jefferies Raises Price Target on First Republic Bank (FRC) Following Q2 Trends

Jefferies is reiterating its Hold rating on shares of First Republic Bank (NYSE: FRC) while raising its price target by $1 to $33.

As a result of the second quarter upside, the firm is raising its 2011 and 2012 EPS estimates from $2.55 to $2.70. Jefferies states that the upside was a result of stronger-than-expected loan growth, lower-than-expected FDIC costs, and a lower tax rate.

An analyst at the firm comments, "FRC continues to demonstrate solid expense controls consistently tracking below its 60 percent efficiency ratio target. Lower FDIC expenses are sustainable and should allow FRC to run at even lower levels going forward. Our earnings model bakes in a 57 percent efficiency ratio over the next year."

For more ratings news on First Republic Bank click here and for the rating history of First Republic Bank click here.

Shares of First Republic Bank closed at $28.86 yesterday.

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