UPDATE: Sterne Agee Downgrades Fox Chase Bancorp to Neutral on Valuation

Sterne Agee reduced its rating on Fox Chase Bancorp

from Buy to Neutral. Sterne Agee said, "We are downgrading shares of Fox Chase to Neutral from Buy based on our belief that the stock at current levels appears fairly valued. In our view, valuation on a fundamental basis is full at 117% P/TBV and the stock has limited upside in a terminal event. Importantly, the company will reach its three-year moratorium in June 2013, at which point all strategic options become available, including a potential sale. In a deal, we believe shares could be worth $18-$19 per share." Fox Chase Bancorp closed at $17.19 on Wednesday.