UPDATE: Sterne Agee Raises Target to $23 on MB Financial

Sterne Agee increases its target price $1 to $23 on Buy-rated MB Financial MBFI the company redeems TARP. Sterne Agee says, "The redemption of $196 million of TARP—with “zero” equity or debt issuance—suggests to us that the credit cycle is largely behind MBFI and that profitability will improve materially. As a result, we are raising our 2012E EPS to $1.60 (+$0.10). Our 2013E EPS remains $2.00, but we believe that consensus 2013E EPS of $1.76 will migrate toward our estimate as loan growth improves and non-provision credit expenses retreat. The TARP redemption will clip 1Q12E EPS by $0.02 but represents a lift to annual EPS of $0.20." MBFI closed at $20.80 a share on Wednesday.