UPDATE: Sterne Agee Upgrades Astoria Financial Corp. to Neutral, Reiterates $9 PT

In a report published Monday, Sterne Agee Group upgraded its rating on Astoria Financial Corp. AF from Underperform to Neutral, and reiterated its $9.00 price target. Sterne Agee noted, “We are upgrading Astoria Financial from Underperform to Neutral. While fundamentals are expected to remain challenged, we believe the shares are fairly valued at 75% of projected tangible book value. Given the profitability challenges in the low interest rate environment, deal speculation will remain high, in our view. While we are not anticipating a deal, we do see solid upside from current levels if the company were to sell.” Astoria Financial Corp. closed on Friday at $9.08.