UPDATE: Sterne Agee Upgrades United Financial Bancorp Following Merger With Rockville Financial

In a report published Friday, Sterne Agee analyst Matthew Breese upgraded United Financial Bancorp (NASDAQ: UBNK) from a Neutral rating to a Buy rating and with a price target of $22.25.In the report, Sterne Agee says "Last Friday, Rockville Financial (RCKB - $15.09 - Buy) and United Financial announced a merger of equals. The combined entity will have $4.8 billion in assets and is projected to generate returns on tangible equity (ROTCE) in excess of 10% in 2015. Given the 100% stock consideration, our price target and rating on UBNK will now reflect the terms of the deal with RCKB. In summary, we are upgrading shares of UBNK to Buy with a $22.25 price target."United Financial Bancorp closed on Thursday at $20.00.