Jefferies Has Hold On MB Financial

Jefferies & Co. has a Hold rating and a $22 price target on shares of MB Financial MBFI. In a note to clients, Jefferies & Co. writes, "MBFI announced the sale of $281mm in problem loans, which cuts the bank's NPLs in half. Provision would lower 1Q11 tangible BV per share to $13.09 (from $13.69). The accompanying provision is roughly in line with estimates in a recently published article on sale speculation. However, we believe the stock could react positively given the speculated loss estimate was viewed as light, and the bank is largely moving past its credit issues." Shares of MBFI lost 38 cents yesterday to close at $18.86, a loss of nearly 2%.