UPDATE: Sterne Agee Downgrades Fulton Financial to Neutral on Valuation

Sterne Agee downgraded Fulton Financial

from Buy to Neutral. Sterne Agee noted, "We are downgrading Fulton Financial to Neutral from Buy. In our view, shares are now fairly valued at 13.2x our revised 2014 estimate and 1.5x tangible book value (TBV). Peers currently trade at 13.2x and 1.8x, respectively. While overall profitability is solid (0.90% ROA), spread income growth will remain a challenge in our view with margin compression expected to offset 4-5% loan growth." Fulton Financial closed at $11.35 on Thursday.