UPDATE: Sterne Agee Upgrades Beneficial Mutual Bancorp to Buy on Second Step Conversion Potential

Sterne Agee upgraded Beneficial Mutual Bancorp

from Neutral to Buy and announced an $11.00 price target. Sterne Agee noted, "We are upgrading shares of BNCL from Neutral to Buy as we believe the company is within 12 months of announcing a second step conversion. In our view, shares remain undervalued, trading below deal value and well below peers of similar size and profile. Our upgrade is predicated on management's change in message - now a second step conversion without an acquisition - and also, we believe the company will garner a scarcity premium as the pool of large, converting MHCs is rapidly shrinking." Beneficial Mutual Bancorp closed at $9.26 on Wednesday.