UPDATE: Sterne Agee Initiates Sterling Financial at Buy on Outlook

Sterne Agee initiated coverage on Sterling Financial Corporation

with a Buy rating and a $25.00 price target. Sterne Agee noted, "In our view, the shares are likely to outperform in FY13 given expense levers to improve core profitability and reduce above peer funding costs, which should result in less NIM pressure relative to the majority of PacNW and SMID cap peers. We also point out a modest valuation on TBVPS (1.1x), excess capital to deploy via acquisitions and buybacks, and solid organic growth potential." Sterling Financial closed at $20.91 on Monday.