Danvers Downgraded To Neutral By Sterne Agee

Sterne Agee has published a research report on Danvers Bancorp, Inc. DNBK and has downgraded the company from Buy to Neutral. In the report, Sterne Agee writes "We are downgrading the shares to Neutral from Buy based on recent outperformance and limited upside to our previous $18 price target. Over the last quarter, the shares increased 16.9% and outperformed the SNL Thrift Index which advanced 9.0%. In our opinion, the shares are fairly valued at 17x our 2012 estimate and 1.45x tangible book value. Fundamentally the story remains on track with a projected 2012 ROAA of 0.71% and solid asset quality with NPAs to assets equaling 0.73% in the most recent quarter. We believe there is limited upside to normalized earnings as credit costs equal a meager 0.25% relative to loans in 2010 and we are projecting credit costs to equal 0.16% relative to loans in 2012." Danvers Bancorp closed yesterday at $17.91.