UPDATE: Sterne Agee Downgrades First Connecticut Bancorp to Neutral; Upside to Current Valuation Limited
Sterne Agee downgraded First Connecticut Bancorp (NASDAQ: FBNK) from Buy to Neutral.
Sterne Agee commented, "Currently, the stock trades at a roughly five percentage point discount to peers on a price-to-tangible book value basis. In our view, this discount is warranted given profitability, as measured by return on assets (ROA), for 2013 is estimated at 0.39% versus peers expected to earn 0.77% by consensus estimates. A reduction in expenses or a substantial increase in revenues to lower the efficiency ratio would drive us to become more constructive on the stock."
First Connecticut Bancorp closed at $14.98 on Thursday.
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