Nomura Securities Upgrades Fifth Third Bancorp (FITB) to Buy; Suggesting Swapping Out of ZION

Nomura Securities upgraded Fifth Third Bancorp (NASDAQ: FITB) to Buy with a price target of $14.00.

Nomura analyst, Brian Foran, said, "Fifth Third is trading at 0.9x tangible book and 8x current earnings. This would make sense if estimates were way too high or the bank couldn’t earn its cost of capital. As mortgage offsets NIM pressure, we think estimates are a little too low. Moreover, FITB is earning a 1.2% ROA and an 11% ROE right now, which seems to justify more than tangible book."

"Our thesis on Zions (Nasdaq: ZION) has not played out. We think valuation is attractive at 0.9x tangible book, but there are no catalysts. Thus, we recommend swapping into Fifth Third at a similar multiple."

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 $9.62 yesterday.

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