DA Davidson analyst Kevin Reevey upgraded Independent Bank to Buy from Neutral with a price target of $27, saying the 5.2% month-to-date decline in its stock price has given investors an attractive entry point opportunity. The analyst notes that the valuation on the stock has come down to 12.8-times his forward earnings estimated, which is a 4% discount to its peer group, even though the stock has historically traded at a premium. Reevey contends that the discount is "unwarranted" based on his tracking of its key metrics, including net interest margins, efficiency ratio, loan and deposit growth, ROE and ROA. The analyst also believes that Independent Bank is well positioned for higher interest rates, and its spread income should be supported by its "asset sensitivity and migration to higher-yielding loans from lower-yielding securities".