Sterne Agee Initiates Buy Rating on Fox Chase Bancorp (FXCB)

Sterne Agee is out with a research report this morning, where it initiates a Buy rating on Fox Chase Bancorp FXCB; it has a $12.00 price target on the stock. The SA analysts said that, over the next several quarters the story will be driven by stabilizing credit trends and eventually reduced overall provision levels. In the back half of 2011, they are expecting the company will begin to actively repurchase shares. The analysts added that, through credit leverage, NIM improvement, modest balance sheet growth and share buybacks, earnings are set to accelerate in the back half of 2011, with overall profitability (ROA) improving to 0.44% by year-end 2011 and 0.54% by year-end 2012.