SVB Financial Reaches Sterne's Price Target, Downgraded To Neutral

Sterne Agee has published a research report on SVB Financial Group SIVB and has downgraded the company from Buy to Neutral. In the report, Sterne Agee writes "We are downgrading the shares of SIVB to Neutral, from Buy, as the stock has reached our 12-month target price. The shares now trade at 25x our 2011 EPS estimate of $2.18 and 1.8x current TBV, both a premium to mid-cap peers. Our DCF points to a fair value of $54, in line with the current price. Although we remain positive on the longer-term outlook for the bank, we think a prolonged low interest rate environment will likely restrain further multiple expansion." SVB Financial Group closed yesterday at $54.24.