UPDATE: Sterne Agee Upgrades Webster Financial from Neutral to Buy, Establishes PT at $25 on Attractive Book Value

In a report published Friday, Stern Agee Upgraded shares of Webster Financial WBS from Neutral to Buy and establishes price target to $25 on confident market environment. Sterne Agee reported that. “We are upgrading Webster Financial to Buy from Neutral and establishing a $25 price target. Our price target equals 13.6x our revised 2014 EPS estimate and 1.4x our projected TBV one year out. We see the company generating full-year returns on tangible common equity (ROTCE) of 11.2% and 10.6%. Northeast peers which generate similar returns currently trade at 140%-150% of tangible book value. Over the last three months, the shares have increased by 6.0%. This compares to a 10.3% increase for the NASDAQ Bank Index.” Webster Financial shares closed that $22.02 on Thursday.