BofA/Merrill Lynch Upgrades Santander Consumer USA Holdings Inc. (SC) to Neutral

BofA/Merrill Lynch upgraded Santander Consumer USA Holdings Inc. (NYSE: SC) from Underperform to Neutral with a price target of $22.00 (from $17.00) saying credit is stable for now.

Analyst Kenneth Bruce said the macro backdrop will likely be supportive and seasonal credit drivers improve into Q1. The analyst also noted limited downside with the valuation at 8.5x 2015 estimates already reflecting caution.

The firm raised '15 and ’16 EPS estimates to $2.45 and $2.30, respectively from $1.95 and $2.10, to reflect lower credit costs on the basis of a stronger economic backdrop and higher used car prices.

For an analyst ratings summary and ratings history on Santander Consumer USA Holdings Inc. click here. For more ratings news on Santander Consumer USA Holdings Inc. click here.

Shares of Santander Consumer USA Holdings Inc. closed at $20.97 yesterday.

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