UPDATE: Sterne Agee Upgrades Webster Financial Corporation to Buy, Names $28 PT on Attractive Valuation

In a report published Tuesday, Sterne Agee analyst Matthew Kelley upgraded the rating on

from Neutral to Buy, and named a $28.00 price target. In the report, Sterne Agee noted, “We are upgrading Webster Financial to Buy from Neutral. After recent underperformance versus peers (NASDAQ Bank Index), we believe the shares are attractively valued. Our $28 target price is based on a 13x 2015 earnings multiple and 1.6x our one-year forward TBV estimate. In our view, the company is likely to manage expenses more actively than peers over the next several years. This should further improve returns on tangible common equity which are expected to in the 11%-12% range in 2014/2015.” Webster Financial Corporation closed on Monday at $24.96.