UPDATE: Sterne Agee Upgrades Bank of the Ozarks to Buy, Sets $35 PT

Sterne Agee has upgraded Bank of the Ozarks Inc.

to Buy from Neutral, and set a price target of $35. Sterne Agee noted, "We are upgrading our rating to BUY from Neutral with a price target of $35 (14x 2014E, discounted by 10%), as we believe that OZRK will benefit from a weaker economic outlook, given its capacity to execute FDIC-assisted and live-bank deals. Our 2013E and 2014E EPS of $2.45 and $2.70, respectively, remain above consensus of $2.30 and $2.43. OZRK is our best special cash DVPS prospect, given its profitability and capital (ROA: ~2.1%, ROTE: 16.4%, TCE: 12.3%)." Bank of the Ozarks closed at $31 on Thursday.