Fifth Third Bancorp (FITB) PT Bumped to $23 at UBS on Vantiv Monetization

UBS reiterated a Buy rating on Fifth Third Bancorp (NASDAQ: FITB), and raised the price target to $23.00 (from $22.00) following a statement indicating FITB intends to sell part of its stock and warrant investment in Vantiv (NYSE: VNTV). UBS estimates FITB will generate roughly $500 million of total gains from these transactions. FITB's strategy for selling down its ownership in Vantiv reinforces views that FITB shares look attractive at current valuations.

Analyst David Eads commented, "Vantiv issued a statement after the close indicating FITB intends to sell part of its stock and warrant investment in VNTV. Specifically, FITB will sell 8 million shares, about 20% of its direct stock holding, and plans to exercise or sell just over 60% of its VNTV warrants. We estimate FITB will generate roughly $500 million of total gains from these transactions, with a ~$220 million after-tax gain associated with the stock sale triggering an opportunity for additional capital returns in the current CCAR period."

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 $20.75 yesterday.

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