Raymond James initiated coverage of Eagle Bancorp with a Strong Buy rating and $32 price target. The bank has faces profitability challenges in recent years from elevated office-related credit costs and core deposit attrition, the analyst tells investors in a research note. However, the firm believes Eagle is at an "inflection point." The company's credit quality has improved following non-performing loan sales, and its problem credits likely have been fully identified following an internal and external loan portfolio review, contends Raymond James. The firm calls Eagle a "comeback story."
