Credit Suisse Cuts Price Target and Estimates on BB&T Capital (BBT) Following Recent Meeting With CFO Daryl Bible

Credit Suisse is reiterating its Underperform rating on shares of BB&T Capital (NYSE: BBT) and is lowering its price target by $1 to $27 following a meeting with the company's CFO Daryl Bible.

The firm states that the company's long term trends remain strong while its near term downside risk from higher loan loss realizations leaves them skeptic.

While the company is is seeing higher lending competition in several of its core markets including C&I, however the firm believes a positive mix shift to higher yielding loan classes like specialized lending will help to keep loan yields stable.

Credit Suisse comments, "BBT continues to generate very attractive credit-adjusted NIMs in specialized lending as +10% loan yields are offset by modest provisions. Also, lower interest rates QTD is still a negative for NIM, but BBT also sees continued declines in deposit prices and believes it can reduce net debt expenses to help keep NIM stable. In the event of significant unrealized gains, BBT could also harvest these gains to help offset the expense of higher provisions."

The firm is lowering its FY11 EPS estimate from $1.78 to $1.60, FY12 from $2.05 to $2.00, and its FY13 from $2.95 to $2.90.

For more ratings news on BB&T Capital click here and for the rating history of BB&T Capital click here.

Shares of BB&T Capital closed at $26.56 yesterday.

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