UPDATE: Sterne Agee Upgrades TCF Financial

According to a research report published today, Sterne Agee has upgraded TCF Financial Corporation's

shares from Neutral to Buy. In the report, Sterne Agee commented, “We are upgrading TCB to BUY. We believe TCB is positioned to grow in 2012E and should demonstrate provision leverage in 2013E. We believe that 2012E represents the bottom in a five-year downturn, and that loan growth will begin to offset negatives related to deposit and debit card fee pressure due to reregulation and elevated credit losses from persistently weak employment and residential RE values in TCB's footprint. We are lowering our 2012E EPS to ($1.36) to reflect the loss from the balance sheet restructuring (operating 2012E EPS: $0.65 (+$0.20)). Our revised 2013E EPS of $1.20 (+$0.40) includes the benefit of the balance sheet restructuring, net of continued pressure on deposit fees through 2012E and weakness in residential RE through 1H13E. Our price target of $13½ reflects a P/E of 13x 2013E EPS plus dividends, discounted by 10%.” TCF Financial closed yesterday at $11.53.