UPDATE: Sterne Agee Upgrades PacWest Bancorp from Neutral to Buy

Sterne Agee upgraded PacWest Bancorp (NASDAQ: PACW) from a Neutral to a Buy rating and raised its price target from $26 to $28.

Sterne Agee wrote, “FCAL announced after the close that it has retained various advisors to evaluate strategic alternatives, including possible merger combinations. Since PACW initiated its hostile bid for FCAL in May '12, investor skepticism has pressured the stocks as time has elapsed. However, with yesterday's announcement, PACW has now moved into the driver's seat to finalize a deal that is beneficial to all shareholders with meaningful upside from current levels. BUY.”

PacWest Bancorp closed at $22.25 on Wednesday.

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