UPDATE: KBW Upgrades Susquehanna Bancshares to Outperform

KBW is out with its report today on Susquehanna Bancshares SUSQ, upgrading SUSQ from Market Perform to Outperform. In a note to clients, KBW writes, "We are upgrading the shares of SUSQ to Outperform (from MP) due to valuation and our increased confidence in the balance sheet ahead of 2Q11 earnings results. The shares trade at only 1.17x pro forma TBV & 8.1x our 2013 EPS estimate for a franchise that we expect to show loan growth, witness better credit metrics & benefit from the redeployment of Abington's excess capital with its acquisition of Tower." Shares of SUSQ closed Tuesday at $7.70, down 7.67% from Monday's close.