UPDATE: Sterne Agee Reiterates Buy Rating, Raises PT on Investors Bancorp

In a report published Wednesday, Sterne Agee Group reiterated its Buy rating on Investors Bancorp

, and slightly raised its price target from $17.00 to $18.00. Sterne Agee noted, “A second step conversion is now only 4-6 months away. We believe the company can bring a deal to market at 94%-98% of pro forma TBV. At the midpoint of this range, the shares continue to trade at a roughly 30 percentage point discount to peers. We expect this valuation gap will be gradually closed over the next 12-18 months. ISBC remains a top pick in our Northeast bank coverage. We increased our price target from $17 to $18 per share.” Investors Bancorp closed on Tuesday at $15.99.