FBR Capital Reiterates a 'Market Perform' on SunTrust Banks (STI); Consistent Trend - Revenue Weaker Credit Costs Lower
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Price: $7.88 +3.55%
Rating Summary:
13 Buy, 23 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
13 Buy, 23 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital reiterates a 'Market Perform' on SunTrust Banks (NYSE: STI), PT $30.
FBR analyst says, "Our Market Perform rating reflects our belief that SunTrust's recovery will lag those of peers due to a slower improvement in credit quality, reflecting its Southeastern geographic concentration and relatively high exposure to residential mortgages. We are increasing our FY11 EPS estimate from $0.97 to $1.16, reflecting lower non-interest expense. We reduce our FY12 EPS estimate from $2.25 to $1.95, reflecting higher provision expense and a lower balance of interest-earning assets. We believe the announced management change extends the time line for the potential sale of the company; therefore, we expect the M&A premium embedded in STI shares to decline and investors to place more emphasis on financial performance."
For more ratings news on SunTrust Banks click here and for the rating history of SunTrust Banks click here.
Shares of SunTrust Banks closed at $27.10 yesterday.
FBR analyst says, "Our Market Perform rating reflects our belief that SunTrust's recovery will lag those of peers due to a slower improvement in credit quality, reflecting its Southeastern geographic concentration and relatively high exposure to residential mortgages. We are increasing our FY11 EPS estimate from $0.97 to $1.16, reflecting lower non-interest expense. We reduce our FY12 EPS estimate from $2.25 to $1.95, reflecting higher provision expense and a lower balance of interest-earning assets. We believe the announced management change extends the time line for the potential sale of the company; therefore, we expect the M&A premium embedded in STI shares to decline and investors to place more emphasis on financial performance."
For more ratings news on SunTrust Banks click here and for the rating history of SunTrust Banks click here.
Shares of SunTrust Banks closed at $27.10 yesterday.
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