UPDATE: Stifel Nicolaus Downgrades MB Financial to Hold; Stock Near Fair Value

Stifel Nicolaus notes in a recent report that it cuts its rating on MB Financial MBFI from Buy to Hold on valuation and moderate growth in earnings. PT of $22.50 is removed. Stifel Nicolaus comments, "Our downgrade from Buy to Hold is based in part on valuation and our forecast for moderate earnings growth. In our view, the leverage to earnings from improved credit has been mostly realized, fee income is likely to grow at a somewhat better-than-average, mid-single-digit pace over the next couple of years, and near term balance sheet growth is likely to intentionally trend shy of the $10 billion asset level for the next several quarters. We believe that if profitability at MB Financial continues to improve, the market could reciprocate with a higher multiple on earnings and suggests our fair value estimate could prove conservative." MBFI closed at $20.91 on Friday.