UPDATE: Sterne Agee Initiates Coverage on First Bancorp with Neutral Rating, $5 PT

In a report published Wednesday, Sterne Agee Group initiated coverage on First Bancorp

with a Neutral rating and $5.00 price target. Sterne Agee noted, “Initiating coverage of FBP with a Neutral rating. With the company reporting its first quarterly operating profit since 2009 in 2Q12, FBP has reached a very important milestone. The trajectory of the company's improvement appears intact, and FBP's deep discount to tangible book value certainly makes FBP shares an attractive risk/reward proposition. While the path appears less turbulent for FBP shares, we remain cautious given profitability headwinds and balance sheet overhangs.” First Bancorp closed on Tuesday at $4.19.