Nomura Securities Maintains a 'Neutral' on CIT Group (CIT); Q1 Preview

Nomura Securities maintains a 'Neutral' on CIT Group (NYSE: CIT) price target raised from $38 to $42.

Analyst., Bill Carcache, said, "CIT’s results will be clouded by a number of accounting nuances this quarter, driven by a heavy volume of debt redemption and refinancing activity. We expect the core underlying business trends to remain solid, and we see the earnings trajectory continuing to improve as the company refinances its high-cost debt. Our quarterly EPS estimate of a loss of $2.02 includes $600m of accelerated interest expense. Consensus estimates (currently at a loss of $0.74) do not appear to fully incorporate the accelerated interest expense at this time."

Nomura FY12 EPS estimate is (0.42) and FY13 is $2.86.

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 $41.24 yesterday.

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