UPDATE: Wunderlich Securities Reiterates On South State On Updated Earnings Model

In a report published Wednesday, Wunderlich Securities analyst Kevin Reynolds reiterated a Buy rating on South State (NASDAQ: SSB), but lowered the price target from $75.00 to $72.00.

In the report, Wunderlich Securities noted, “We reiterate our Buy rating on shares of First Financial Holdings, Inc. (SSB), although we are lowering our price target by $3 to $72 to reflect lower industry valuations. SSB reported 2Q14 operating EPS of $0.92 that exceeded consensus by a penny.

"Inside the numbers, organic loan growth was strong and management continues to work expenses lower, with even greater expense reductions likely in 2H14 now that the conversion of the legacy First Financial franchise was completed in July. This should yield improving EPS over the next several quarters as the operating efficiency ratio continues to decline while loan growth remains robust. Our confidence in SSB's management team remains high, and we believe current levels offer an attractive entry point for small cap bank investors.”

South State closed on Tuesday at $57.98.