Sometimes too much good news can be a bad thing for a banking company, at least according to Robert S. Patten of UBS Warburg, who initiated coverage for M&T Bank Corp. Friday with a “hold” rating.

The Buffalo company’s stock did not rise with other bank stocks after the Federal Reserve’s surprise rate cut on Jan. 3., but M&T has been spared from the recent carnage in the sector. Analysts say the company boasts good management, solid earnings, and a convincing acquisition strategy that helps put it an exclusive club. The problem is the stock’s high multiple, Mr. Patten wrote in a research note on Friday. He would like to see M&T trading in the low $60s, rather than at Friday’s $67.33 — 19.64 times earnings as tallied under generally accepted accounting principles.

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