UPDATE: Wunderlich Raises PT on Bank of Marin Bancorp to $40 (BMRC)

Wunderlich is out with its report today on Bank of Marin Bancorp BMRC, raising its PT from $37 to $40.

In a note to clients, Wunderlich writes, "We maintain our Buy rating on shares of Bank of Marin Bancorp, and we are raising our price target by $3 to $40 on the heels of the company's recently completed acquisition of the failed Charter Oak Bank on February 18, marking BMRC's first FDIC-assisted acquisition. With a strong management team, abundant capital, and credit quality that remains among the strongest in our research universe, we believe that current levels understate the inherent value of BMRC's shares. Accordingly, we recommend purchase for investors in high-quality, small-cap bank stocks."

Shares of BMRC closed Monday at $36.81, up 2.25% from Friday's close.