UPDATE: Sterne Agee Initiates Coverage on Rockville Financial with Neutral Rating on Fair Valuation

In a report published Tuesday, Sterne Agee analyst Matthew Breese initiated coverage on Rockville Financial

with a Neutral rating. In the report, Breese noted, “We are initiating on Rockville Financial with a Neutral rating. While the company has solid credit and profitability metrics, we believe the shares are close to fairly valued at 109% of tangible book value. For the time being the company is focused on expanding its commercial real estate portfolio, mortgage banking platform and branch presence in Connecticut. With excess capital, the company's capital deployment strategy consists of dividends, buybacks and potentially M&A.” Rockville Financial closed on Monday at $12.40.