UPDATE: Sterne Agee Upgrades City Holding Company from Underperform to Neutral

Sterne Agee upgraded City Holding Company CHCO from Underperform to Neutral. Sterne Agee commented, “We are raising our rating to Neutral from Underperform due to an increase in our earnings expectations (driven mainly by M&A) combined with YTD price underperformance (-3% YTD vs. +12% for SMID banks). The relative valuation framework has shifted meaningfully as shares now trade at an 8% discount to peers on 13E (11.9x vs. 12.9x) vs. a 14% premium in October 2011 (12.8x vs. 11.2x).” City Holding Company closed at $32.93 on Tuesday.