UPDATE: Sterne Agee Upgrades M&T Bank Based on Earnings Performance

In a report published on Friday, Sterne Agee analyst Todd Hagerman upgraded M&T Bank (NYSE: MTB) from Neutral to Buy and maintained a $125 price target on the company.

In the report, Sterne Agee commented that, "MTB's earnings performance has consistently beat expectations since the heart of the financial downturn in '09, outperforming the relative indices over that time. However, share performance has stalled following indications that the previously announced acquisition of HCBK will be delayed. We view the delay and associated regulatory issue as simply a red herring, or a buying opportunity. What matters is the strong underlying earnings power in an otherwise challenging environment."

M&T Bank closed Thursday at $103.56.