Compass Point Upgrades Fifth Third Bancorp (FITB) to Buy; Cheaper Than Peers with Excess Capital
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Price: $53.42 --0%
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 23
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 23
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Compass Point upgraded Fifth Third Bancorp (NASDAQ: FITB) from Neutral to Buy with a price target of $17.00 (from $15.00).
Analyst, Kevin Baker, said, "We believe FITB presents a very attractive risk-reward prior to the Fed's announcement on whether FITB will be permitted to increase their dividend and share repurchase plans. The stock has underperformed peers by roughly 10% YTD and is currently priced at a 15% discount to comps on FY13 consensus earnings. If the Fed approves FITB's proposed capital plan for additional repurchases and a higher dividend, we believe the company could have a combined payout ratio above 60% (dividends plus buybacks), which should be a near term catalyst for shares while most banks are trading off macro-level events."
Baker raises FY12E EPS from $1.46 to $1.58 and FY13E EPS from $1.38 to $1.50.
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 $13.64 yesterday.
Analyst, Kevin Baker, said, "We believe FITB presents a very attractive risk-reward prior to the Fed's announcement on whether FITB will be permitted to increase their dividend and share repurchase plans. The stock has underperformed peers by roughly 10% YTD and is currently priced at a 15% discount to comps on FY13 consensus earnings. If the Fed approves FITB's proposed capital plan for additional repurchases and a higher dividend, we believe the company could have a combined payout ratio above 60% (dividends plus buybacks), which should be a near term catalyst for shares while most banks are trading off macro-level events."
Baker raises FY12E EPS from $1.46 to $1.58 and FY13E EPS from $1.38 to $1.50.
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 $13.64 yesterday.
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