Goldman Sachs Upgrades M&T Bank (MTB) to Buy

Goldman Sachs upgraded M&T Bank (NYSE: MTB) from Neutral to Buy with a price target of $145.00 (from $128.00).

Analyst Ryan Nash said, "We believe earnings accretion from HCBK will prove well above original guidance, driving upside to EPS (pro- forma we are 6% above consensus for 2015) and declining professional costs (BSA/AML) and an increased focus on efficiency will drive its ratio toward its 50-55% target. Longer-term, we see 12% upside to EPS from higher rates for the combined bank. While uncertainty remains over the timing and ultimate outcome of the deal, we think core MTB has enough earnings power to support shares at the current price."

The analyst sees several catalysts that could drive shares higher, including: (1) Higher HCBK EPS accretion; (2) Expenses declines coming post 3Q; (3) Rate sensitivity under-appreciated:.

For an analyst ratings summary and ratings history on M&T Bank click here. For more ratings news on M&T Bank click here.

Shares of M&T Bank closed at $121.37 yesterday.

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