UPDATE: Sterne Agee lowers PT on Bank of America to $9

Sterne Agee is out with its report today on Bank of America (NYSE: BAC), lowering its PT to $9 from $11.

In its report, Sterne Agee writes, "Our 2011 and 2012 estimates fall to $0.75 from $0.80 and to $1.30 from $1.50, respectively. Modestly lower margin expectations, and higher preferred dividend costs are the near-term drivers. Our 2013 estimate falls to $1.55 from $1.85. Our 12-month price target falls to $9 from $11 and implies 0.6-0.7x our estimated 2012 tangible book value, 7x our 2012 estimate, and about 6x our 2013 earnings estimate of approximately $1.55/share."

Sterne Agee maintains Neutral on BAC.

At the time of posting, shares of BAC were trading pre-market at $7.47, down 2.35% from Thursday's close.