UPDATE: Sterne Agee Initiates Oriental Financial Group at Buy on Growth and Earnings Outlook

Sterne Agee initiated coverage on Oriental Financial Group

with a Buy rating and a $14 price target. Sterne Agee noted, "With the pending acquisition of BBVAPR and recent capital raise, OFG has been able to deploy its excess capital (29.25% Tier 1 Common) in a manner that will strengthen its earnings profile, bolster profitability and reduce its credit exposure (via marks on acquired loans/a larger overall balance sheet). Additionally, the transaction gives the company greater critical mass and a more diversified earnings stream in a highly competitive Puerto Rican market." Oriental Financial Group closed at $10.25 on Tuesday.