Evercore ISI Cuts Estimates on BB&T Corp. (BBT) Due to Higher Tax Rate - Reiterates Buy

Evercore ISI maintained a Buy rating on BB&T Capital (NYSE: BBT), and cut the price target to $38.00 (from $41.00), following the company's 4Q earnings report. BBT reported 4Q15 EPS of $0.64. Excluding merger charges, Evercore pegs core at $0.68 vs the Street $0.69. While Evercore reduced ests primarily due to a higher tax rate, a constructive thesis remains intact.

Analyst John Pancari commented, "BBT reported 4Q15 EPS of $0.64. Ex merger charges, we peg core at $0.68 vs our est of $0.71 and Street $0.69. Downside was attributable to lower than expected fee income and higher tax rate, partly offset by lower than expected expenses. Bottom line: while we are reducing ests primarily due to a higher tax rate, our constructive thesis remains intact and supported by BBT's above peer returns, lower credit risk profile (evident in 4Q results), and disciplined growth strategy. See links to our previously published 4Q notes on the next page."

For an analyst ratings summary and ratings history on BB&T Capital click here. For more ratings news on BB&T Capital click here.

Shares of BB&T Capital closed at $31.78 yesterday.

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