Barclays Maintains an 'Underweight' on SunTrust Banks (STI); 2Q11 EPS Review: Another Cost-Cutting Program Revealed, Dividend Coming
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Price: $7.64 -1.04%
Rating Summary:
13 Buy, 23 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
13 Buy, 23 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Underweight' on SunTrust Banks (NYSE: STI) price target of $30.00.
Barclays analyst says, "Results for STI in 2Q11 came in about in line with expectations as a lower provision and a stable NIM were able to offset higher credit-related expenses and slight balance sheet contraction. Still, organic loan growth remains elusive and the NIM is expected to come under pressure near term. To help combat these headwinds, its relatively new CEO/CFO broadly outlined a new expense initiative. Still, it comes less than two years after its prior program. Additionally, its targets of a 1.00% ROA and 60% efficiency ratio look to be below peers."
"We are fine tuning our 2011 and 2012 EPS estimates of $1.19 and $1.69
to $1.20 and $1.70 respectively, reflecting further credit quality improvement but somewhat subdued by lower earning asset growth and a declining net interest margin. Having completed a major efficiency program less than two years ago, we hesitate to give STI credit for its recent announcement at this time."
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 $25.95 yesterday.
Barclays analyst says, "Results for STI in 2Q11 came in about in line with expectations as a lower provision and a stable NIM were able to offset higher credit-related expenses and slight balance sheet contraction. Still, organic loan growth remains elusive and the NIM is expected to come under pressure near term. To help combat these headwinds, its relatively new CEO/CFO broadly outlined a new expense initiative. Still, it comes less than two years after its prior program. Additionally, its targets of a 1.00% ROA and 60% efficiency ratio look to be below peers."
"We are fine tuning our 2011 and 2012 EPS estimates of $1.19 and $1.69
to $1.20 and $1.70 respectively, reflecting further credit quality improvement but somewhat subdued by lower earning asset growth and a declining net interest margin. Having completed a major efficiency program less than two years ago, we hesitate to give STI credit for its recent announcement at this time."
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 $25.95 yesterday.
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