UPDATE: Stifel Nicolaus Downgrades Webster Financial to Hold

Stifel Nicolaus downgrades Webster Financial (NYSE: WBS) to Hold from Buy as it believes progress and good news are already priced into the company's shares.

Stifel Nicolaus says, "Since the end of 3Q11, shares of WBS have appreciated 37.4%, versus 25.7% for the S&P Bank Index, and are now within 2% of our $21 fair value estimate. Thus, we are lowering our rating on WBS shares to Hold from Buy. While we think Webster's future remains bright, and the company has made considerable strides to improve its overall financial performance, at this stage, we believe many of those improvements are already reflected in the value of its shares."

WBS closed at $20.49 per share on Thursday.

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