Sterne Agee Initiates Coverage of STI

Sterne Agee has issued a report initiating coverage of SunTrust Banks Inc STI with a Neutral Rating. According to the report, “Our P/E/tangible book value derived price target implies 1.3x our estimated 2011 tangible book value of about $25/share, 15x our 2012 estimate of $2.20, and about 12-13x our normalized earnings assumption of $2.50-$2.75 per share.” STI has a $33 Price Target and closed at $29.88 yesterday.