Compass Point Starts Independent Bank (INDB) at Buy

Compass Point initiates coverage on Independent Bank (NASDAQ: INDB) with a Buy rating and a price target of $46.00.

Analyst Laurie Havener Hunsicker said, "INDB is a standout community bank on asset sensitivity. We believe that the valuation multiple of INDB will begin to expand as the language around interest rates begins to change. Our $46 PT is based on the perception that rates will rise and that INDB shares will appreciate in advance of the actual EPS ramp occurring. In our view, when rates move up, INDB is one of the best of breed banks that will benefit; of the 21 New England-based community banks between $1-7 billion in assets, only four, including INDB, are poised to benefit from a rise in rates, with INDB leading the pack. INDB is the largest publicly-traded bank headquartered in MA serving the greater Boston MSA."

The firm is introducing operating FY14E and FY15E at $2.45 and $2.74, respectively.

For an analyst ratings summary and ratings history on Independent Bank click here. For more ratings news on Independent Bank click here.

Shares of Independent Bank closed at $36.92 yesterday.

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