Sterling Bancshares "outperform," target price reduced

10/24/07 - Robert W. Baird

NEW YORK, October 24 (newratings.com) - Analysts at Robert W Baird maintain their "outperform" rating on Sterling Bancshares Inc (SBIB), while revising their estimates for the company. The target price has been reduced from $14 to $13.

In a research note published this morning, the analysts mention that the company has posted its 3Q07 operating EPS and revenues ahead of the estimates. Improvements in Sterling Bancshares’ operating efficiency are expected to flatten out over the next 12-15 months, with the integration of the ten branches being acquired from First Horizon, the analysts say. The EPS estimate for 2007 has been raised from $0.72 to $0.74. The EPS estimate for 2008 has been reduced from $0.80 to $0.78.