UPDATE: Sterne Agee Downgrades Investors Bancorp to Neutral, Reiterates $19 PT

In a report published Monday, Sterne Agee Group downgraded its rating on Investors Bancorp

from Buy to Neutral and reiterated its $19.00 price target. Sterne Agee noted, “We are downgrading Investors Bancorp to Neutral from Buy as the valuation heading into the long anticipated second step conversion looks fair. By our calculation, the shares are now trading at a level that implies an offering would be priced at 103% of tangible book value (TBV) based on year end 2012 base equity. With the actual $1.2 billion deal more than nine months away, we believe it is prudent to be more cautious into the transaction.” Investors Bancorp closed on Friday at $18.81.