UPDATE: Sterne Agee Downgrades Northwest Bancshares to Neutral on Valuation, Outlook

Sterne Agee reduced its rating on Northwest Bancshares NWBI from Buy to Neutral. Sterne Agee noted, "We are downgrading Northwest Bancshares to Neutral as valuation appears fair at 119% of tangible book value and 17.5x our 2013 EPS estimate. Since the announcement of the second step conversion 2009, the stock has increased 34.7% vs. the NASDAQ Bank index up 8.8%. With lower margin estimates and flat projected earnings over the next two years, we see limited upside to shares." Northwest Bancshares closed at $12.22 on Monday.