FBR Capital Reiterates an 'Outperform' on Fifth Third Bancorp (FITB); Lackluster Quarter, but Capital Management Next Catalyst
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Price: $53.42 --0%
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital reiterates an 'Outperform' on Fifth Third Bancorp (NASDAQ: FITB), PT $17.
FBR analyst says, "NPAs declined in the C&I, construction, and residential portfolios, but there was a slight tick up in CRE NPAs. The modest increase in CRE NPAs prevented a more meaningful increase in reserve releases from $190M in 4Q10. This is likely a result of the company's continuing drag from its Michigan and Florida CRE loan portfolio. On the earnings front, pre-tax, pre-provision earnings also declined, but should be sustainable through FY11 as mortgage banking bounces back slightly from a poor quarter. With a strong capital base and relatively attractive valuation of 9.7x FY12E EPS, FITB should be positioned to outperform when it starts to put its capital to work. We are increasing our FY11 operating EPS estimates to $1.20 from $1.05 due to the current quarter's results and lower provisions and maintaining our FY12 operating EPS estimate of $1.40."
For more ratings news on Fifth Third Bancorp click here and for the rating history of Fifth Third Bancorp click here.
Shares of Fifth Third Bancorp closed at $13.16 yesterday.
FBR analyst says, "NPAs declined in the C&I, construction, and residential portfolios, but there was a slight tick up in CRE NPAs. The modest increase in CRE NPAs prevented a more meaningful increase in reserve releases from $190M in 4Q10. This is likely a result of the company's continuing drag from its Michigan and Florida CRE loan portfolio. On the earnings front, pre-tax, pre-provision earnings also declined, but should be sustainable through FY11 as mortgage banking bounces back slightly from a poor quarter. With a strong capital base and relatively attractive valuation of 9.7x FY12E EPS, FITB should be positioned to outperform when it starts to put its capital to work. We are increasing our FY11 operating EPS estimates to $1.20 from $1.05 due to the current quarter's results and lower provisions and maintaining our FY12 operating EPS estimate of $1.40."
For more ratings news on Fifth Third Bancorp click here and for the rating history of Fifth Third Bancorp click here.
Shares of Fifth Third Bancorp closed at $13.16 yesterday.
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