Compass Point Downgrades SunTrust Banks (STI) to Neutral, Limited Upside

September 24, 2012 7:59 AM EDT
Get Alerts STI Hot Sheet
Price: $55.09 +2.32%

Rating Summary:
    16 Buy, 23 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 29 | Down: 29 | New: 23
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Compass Point downgraded SunTrust Banks (NYSE: STI) from Buy to Neutral with a price target of $30.00 (from $29.00).

The firm comments, "We are downgrading our rating on STI from Buy to Neutral as the upside potential to our price target no longer warrants a Buy rating. Since Aug-1, the stock has appreciated 21% versus a 12% gain for the BKX. STI has outperformed on the heels of its announced capital actions (Sep-6) and has been bolstered by the larger than expected QE3 announcement. Going forward, earnings should be supported by strong mortgage banking (near-term) as well as a material drop in mortgage putback provision. In order for the stock to outperform our expectation, the company would need to achieve their targeted 60% efficiency ratio which we view as a stretch in this extended period of low rates."

For an analyst ratings summary and ratings history on SunTrust Banks click here. For more ratings news on SunTrust Banks click here.

Shares of SunTrust Banks closed at $28.43 yesterday.

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