UPDATE: Sterne Agee Initiates Coverage on Chicopee Bancorp on Fair Valuation

In a report published Thursday, Sterne Agee analyst Matthew Breese initiated coverage on

with a Neutral rating. In the report, Sterne Agee noted, “Chicopee Bancorp is a small-cap, commercial bank headquartered near Springfield, Massachusetts, an area otherwise known as ‘The Crossroads' of New England. On a fundamental basis, we believe shares of Chicopee are fairly valued; however a 13-D has been filed by a top shareholder and we believe upside remains in a potential terminal event. In a deal, we believe shares could fetch $21.00-$22.00 p/s. Overall, we believe shares are fairly valued at roughly $19.00 p/s.” Chicopee Bancorp closed on Wednesday at $17.86.