FBR Capital Upgrades M&T Bank (MTB) to Market Perform
More News related to MTB
- M&T Bank Ranked in the Nation's Top Ten Lenders to Small Business
- M&T Bank (MTB) Approves $0.70 Per Share Quarterly Dividend
- M&T Bank Corp (MTB) Declares $0.70 Quarterly Dividend; 4.4% Yield
- M&T Bank Corporation Announces Fourth Quarter Dividend
- M&T Bank Corporation to Participate in BancAnalysts Association of Boston Conference
More News related to Upgrades
- Maxim Group Initiates Coverage on Golden Green Enterprises (CHOP) with a Buy
- Hilliard Lyons Initiates Coveage on Approach Resources (AREX) with a Buy
- Wells Fargo Transfers Coverage on Intuitive Surgical (ISRG) to a Market Perform; Raises Valuation Range
- Wedbush Initiates Coverage on Coinstar (CSTR) with an Outperform
- Thomas Weisel Starts FARO Tech. (FARO) at Overweight, $24 Price Target
FBR Capital upgrades M&T Bank (NYSE: MTB) from Underperform to Market Perform, price target to $70
FBR analyst says, "We upgrade MTB to Market Perform based on (1) an improved earnings outlook, (2) credit trends tracking better than modeled, and (3) improvement in MTB's TCE ratio and our expectation for continued improvement. We acknowledge that we overestimated MTB's credit losses, and given our revised loss outlook, we expect MTB will be able to generate a 15% ROTCE in 2010 and a 17% to 18% ROTCE in 2011. At this level of profitability, MTB has historically traded at 2.4x to 2.8x tangible book multiple. We raise our respective 2009 and 2010 EPS estimates to $3.10 (from $2.55) and $4.10 (from $2.75) largely reflecting lower credit costs, and we initiate a 2011 estimate of $5.00. We still consider MTB's late-cycle loan exposures (two-thirds of loans in CRE and C&I categories), uncertainty surrounding the shares owned by AIB, relatively thin capital (although improved), and premium valuation relative to peers as risks."
M&T Bank Corporation operates as the holding company for M&T Bank and M&T Bank, National Association that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions.
Related Categories
UpgradesStocks Mentioned
-0.05Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
