Sterne Agee Neutral on SVB Financial Group

Sterne Agee is out with a research report on SVB Financial Group

and it has a Neutral rating on shares. In a note to clients, Sterne Agee writes, "The longer-term outlook is still positive for SIVB as a potential holding for those looking for exposure to revenue growth despite a slow economy, and a growing international/differentiated banking model. Nonetheless, while the market reacted favorably to 3Q11 results, we believe a more bullish thesis on the name requires expectations for higher interest rates to drive stronger profitability. 3Q11 earnings were better than expected and we are increasing our FY11E by $0.17 to $3.98 per share. However, we are also trimming FY12E by $0.17 to $3.19 per share and FY13E by $0.37 to $3.75 per share. The estimate reduction is a function of slower anticipated top-line revenue growth (NIM and loan growth expectations)." Shares of SIVB gained $4.54 on Friday to close at $46.05.