UPDATE: Sterne Agee Upgrades East West Bancorp to Buy on Outlook

Sterne Agee raised its rating on East West Bancorp

from Neutral to Buy with a $26 price target. Sterne Agee noted, "We are upgrading shares of EWBC to BUY from Neutral with a $26 PT, as we believe outperformance is likely vis-a-vis bank averages in 2013. We think investors are overly focused on the continued run-off of covered assets, and are missing the flexibility of earning power from expense management and remaining credit leverage going forward. Further, we believe EWBC will prove one of the better capital managers going forward with sustained buyback activity and a likely higher dividend." East West Bancorp closed at $22.62 on Thursday.