Nomura Securities Maintains a 'Buy' on Fifth Third Bancorp (FITB); Potential Gain From Vantiv IPO

Nomura Securities maintains a 'Buy' on Fifth Third Bancorp (NASDAQ: FITB) price target of $14.50.

Analyst, Brian Foran, said, "According to Reuters, Vantiv is moving toward an IPO, and the unrealized value in Fifth Third’s stake could be ~$0.80 per share or ~6% of FITB’s market cap. Only a small piece of this is recognized as a gain upfront given equity method accounting rules, probably ~$0.07, but the value is still there. We think this is positive but the stock hasn’t budged. The best explanation we have heard is Fifth Third is getting capital that it doesn’t need and can’t redeploy today, and past bank spin outs have a mixed history."

For an analyst ratings summary and ratings history on Fifth Third Bancorp click here. For more ratings news on Fifth Third Bancorp click here.

Shares of Fifth Third Bancorp closed at $13.48 yesterday.

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