UPDATE: Nomura Securities Downgrades CIT Group (CIT) to Neutral

February 5, 2013 6:47 AM EST
Get Alerts CIT Hot Sheet
Price: $42.15 +0.31%

Rating Summary:
    12 Buy, 15 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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(Updated - February 5, 2013 8:16 AM EST)

Nomura Securities downgraded CIT Group (NYSE: CIT) from Buy to Neutral with a $45 price target.

Analyst, Bill Carcache comments: "We are downgrading CIT to Neutral (from Buy) following a strong run-up in CIT shares over the past 2+ months (shares have appreciated +16% since mid-November compared to S&P 500 performance of +11% during the same period). We now view the risks vs. rewards of owning CIT shares as more in balance. Our downgrade is driven by: 1) Step change in economic margins now reflected in estimates; 1H13 economic outlook is murky at best; 3) Opex expectations have moved more in line with our estimates. We will be looking for a 2H13 pickup in macroeconomic activity and/or a pullback in shares before once again becoming more constructive. We are leaving our estimates and $45PT unchanged at this time."

FY12A EPS at ($2.96); FY13E EPS from $3.66 to $3.71.

For an analyst ratings summary and ratings history on CIT Group click here. For more ratings news on CIT Group click here.

Shares of CIT Group closed at $42.07 yesterday.

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