Wunderlich Securities Downgrades CVB Financial to Hold

Wunderlich Securities lowers its rating on CVB Financial CVBF from Buy to Hold as its credit recovery is believed to be all played out. The price target on shares is reiterated at $12. Wunderlich Securities says, "We are downgrading shares of CVB Financial Corp. (CVBF) to Hold from Buy as the shares approach our $12 price target. CVBF shares have increased roughly 60% since the banking sector bottomed at the beginning of October and we believe they reflect a relatively full valuation at 1.9x TBV/share and 14x our 2012 EPS estimate. We remain encouraged by management's actions over the past several quarters to clean up the balance sheet and compete from a position of strength in Southern California. However, we believe such progress is largely discounted in the current share price, and the lack of a near-term catalyst to drive the shares meaningfully higher moves us to the sidelines at this point." CVBF closed at $11.82 yesterday.