Nomura Securities maintains a 'Neutral' on CIT Group (CIT); Revising Estimates Ahead of 4Q Results
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Price: $53.50 --0%
Rating Summary:
12 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
12 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Nomura Securities maintains a 'Neutral' on CIT Group (NYSE: CIT) price target of $36.00.
Analyst, Bill Carcache, said, "Including Series A redemptions announced over the course of the past month, CIT has eliminated or refinanced approximately $18 billion of high-cost debt. We are revising our 4Q11 estimates to reflect a $90 million ($0.45 per share) increase in interest expense associated with the redemption of the company’s student lending securitization and to capture the corresponding acceleration of the company’s Fresh Start Accounting discount. Our revised 4Q11 estimate goes to a loss of $0.09 per share (from a profit of $0.35). While we expect our earnings estimates for 2012 and beyond to increase as the benefit of continued reductions in high-cost debt flow through to the bottom line, we are leaving them unchanged at this time. We will revisit our outlook for the forward earnings trajectory of the company after the call."
For an analyst ratings summary and ratings history on CIT Group click here. For more ratings news on CIT Group click here.
Shares of CIT Group closed at $38.00 yesterday.
Analyst, Bill Carcache, said, "Including Series A redemptions announced over the course of the past month, CIT has eliminated or refinanced approximately $18 billion of high-cost debt. We are revising our 4Q11 estimates to reflect a $90 million ($0.45 per share) increase in interest expense associated with the redemption of the company’s student lending securitization and to capture the corresponding acceleration of the company’s Fresh Start Accounting discount. Our revised 4Q11 estimate goes to a loss of $0.09 per share (from a profit of $0.35). While we expect our earnings estimates for 2012 and beyond to increase as the benefit of continued reductions in high-cost debt flow through to the bottom line, we are leaving them unchanged at this time. We will revisit our outlook for the forward earnings trajectory of the company after the call."
For an analyst ratings summary and ratings history on CIT Group click here. For more ratings news on CIT Group click here.
Shares of CIT Group closed at $38.00 yesterday.
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