UPDATE: Bank of America Initiates Coverage on Springleaf as Niche Player with Solid Consumer Loan Opportunity

In a report published Monday, Bank of America analyst Kenneth Bruce initiated coverage on

with a Neutral rating and $21.50 price target. In the report, Bank of America noted, “We are initiating coverage on Springleaf Holdings Inc. (LEAF) with a Neutral rating and establishing a $21.50 Price Objective. LEAF is a leading direct subprime installment lender with an attractive branch footprint, budding acquisition platform and improving financial position. We expect LEAF to generate positive earnings in 2014 and reach +20% EPS growth in 2015. Since its IPO in mid-October, LEAF has appreciated 19% and expanded its valuation to 9.4x our 2015 EPS forecast. We think the near-term upside in LEAF may be limited, given its recent performance and relatively short history as a public company. Given the ~7% return to our current P.O., we think the shares warrant a Neutral rating.” Springleaf closed on Friday at $20.18.