Raymond James initiated coverage of Mechanics Bancorp with an Outperform rating and $17 price target. The West Coast regional bank's primary growth engine has been M&A and the recently closed HomeStreet transaction is already proving to be a highly accretive, "home run" deal, the analyst tells investors. The firm also views the company as a takeout candidate over time given the strength of its platform and scarcity value for a bank of its size on the West Coast, the analyst added.
