Susquehanna shares close unchanged after upgrade

The stock climbed as high as $14.67, but closed at $13.49.

Keefe, Bruyette & Woods analyst Robert Hughes boosted his rating to "Market Perform" from "Underperform" with a $13 price target--slightly below Tuesday's $13.49 closing price.

"Susquehanna's concentration of (construction and development) loans is still somewhat concerning, but according to our stressed credit scenario, we view Susquehanna as unlikely to have to raise equity capital," he said in a note to clients.

He said the stock's current price (down about 27 percent year to date) better balances potential upside with risk, although Hughes does expect to see further credit weakening and continued volatility in the marketplace.

Hughes expects the company to earn $1.20 per share for 2008, while analysts polled by Thomson Financial expect, on average, earnings of $1.40 per share for the year.

A company representative was not immediately available for comment.