D.A. Davidson analyst Kevin Reevey just initiated coverage on four U.S. regional banks, and he apparently has a very mixed outlook for the space. Here’s a summary of what he had to say.

First Merchants Corporation FRME 1.97%: Buy, $29 Price Target

Reevey sees the bank holding a “leadership position in some of the region’s most attractive markets.” In addition, he noted the stock’s multiple based on 2017 earnings estimates is only 12.6x, 11 percent lower than its peer group.

Lakeland Financial Corporation LKFN 1.16%: Neutral, $51 Price Target

Reevey pointed out that Lakeland is “one of the top five players in some of the Hoosier state’s best markets.” However, at 16.4x 2017 earnings, the stock currently trades at a 19 percent premium to its Indiana peers.

1st Source Corporation SRCE 3.11%: Neutral, $36 Price Target

Reevey praised the company’s “balanced loan portfolio with stable credit quality.” However, like Lakeland, the stock currently trades…

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