Barclays Maintains an 'Underweight' on SunTrust Banks (STI); 3Q11 EPS Review: 'Playbook for Profitable Growth' Follows 'Excellence in Execution'
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Price: $31.88 -0.84%
Rating Summary:
17 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
17 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade STI Now!
Barclays maintains an 'Underweight' on SunTrust Banks (NYSE: STI) price target of $30.00.
Barclays analyst says, "Bottom-line: Overall 3Q11 results for STI came in about inline with expectations after accounting for the non-operating valuation adjustment gains in the quarter. Still, the outlook for further margin pressure was discouraging but improving credit trends appear to be intact. Further details (including a name) were given for its recently announced expense initiatives program and we look forward to benefits materializing in 2012. STI believes its in a better position entering this year's CCAR process and is expecting to submit a capital plan that balances dividends and share buyback. Still, its targets of a 1.00% ROA and 60% efficiency ratio look to be below peers."
"Following 3Q11's results driven by valuation gains, we are increasing our 2011 EPS estimate by $0.06 to $1.26. We are maintaining our 4Q11 estimate of $0.32 and our below-consensus 2012 estimate of $1.70 as continued margin pressure will be mostly offset by credit improvement and modest loan growth."
For more ratings news on SunTrust Banks click here and for the rating history of SunTrust Banks click here.
Shares of SunTrust Banks closed at $18.57 yesterday, with a 52 week range of $16.51-$33.14.
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Barclays analyst says, "Bottom-line: Overall 3Q11 results for STI came in about inline with expectations after accounting for the non-operating valuation adjustment gains in the quarter. Still, the outlook for further margin pressure was discouraging but improving credit trends appear to be intact. Further details (including a name) were given for its recently announced expense initiatives program and we look forward to benefits materializing in 2012. STI believes its in a better position entering this year's CCAR process and is expecting to submit a capital plan that balances dividends and share buyback. Still, its targets of a 1.00% ROA and 60% efficiency ratio look to be below peers."
"Following 3Q11's results driven by valuation gains, we are increasing our 2011 EPS estimate by $0.06 to $1.26. We are maintaining our 4Q11 estimate of $0.32 and our below-consensus 2012 estimate of $1.70 as continued margin pressure will be mostly offset by credit improvement and modest loan growth."
For more ratings news on SunTrust Banks click here and for the rating history of SunTrust Banks click here.
Shares of SunTrust Banks closed at $18.57 yesterday, with a 52 week range of $16.51-$33.14.
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