Sterne Agee is buying the dip in Susquehanna Bancshares (SUSQ +1.1%), upping to Buy with $13.50 price target following last week's disappointing earnings and guidance which sent the stock tumbling more than 10%.
Possible catalysts include a new round of cost-cutting, additional credit leverage, and more active capital management in 2015.
Then there's valuation. Heading into earnings, SUSQ P/E multiple was the lowest in its Northeast regional peer group. Even with estimate cuts - and Sterne Agee takes its down by 4% - the stock remains attractively valued.