UPDATE: Sterne Agee Lowers ViewPoint Financial to Neutral on Challenging Profitability Improvement

In a report published Thursday, Sterne Agee analyst Brett Rabatin lowered the shares of ViewPoint Financial Group

from a Buy to Neutral rating, as well as its price target from $23.00 to $19.50. In the report, Rabait wrote, "We are lowering our rating from Buy to Neutral, reducing our FY13/14E by 19%/18% and lowering our PT to $19.50 (-$3.50) as we believe the transition from mortgage warehouse to commercial bank earnings will be slower than previously anticipated. We continue to like the longer-term growth story in TX; the bottom line is we are nonetheless concerned forward profitability improvement will be more limited as the transition away from the mortgage warehouse business unfolds." ViewPoint closed Wednesday at $19.16.