FBR Capital Reiterates a 'Market Perform' on M&T Bank (MTB); 1Q11: Managing Capital Ratios in Preparation for Wilmington Trust
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Price: $146.50 -0.99%
Rating Summary:
12 Buy, 17 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 7
Rating Summary:
12 Buy, 17 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 7
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FBR Capital reiterates a 'Market Perform' on M&T Bank (NYSE: MTB), PT $90.
FBR analyst says, "We reiterate our rating and price target for M&T equal to 2.5x 4Q11 TBV and 12.5x 2012 EPS. In 1Q11, M&T de-leveraged its balance sheet with a $750 million reduction in investment and trading securities, and its decision to resume selling the majority of its resi mortgage production. The goal of these actions is to manage capital ratios ahead of its Wilmington Trust acquisition, but they will also likely be reflected in lower earning assets in 2Q11. M&T declined to comment on plans for further reductions. Otherwise, 1Q trends were largely in line with expectations. We adjust our 2011 operating EPS estimate to $6.50 (from $6.45), and reiterate our 2012 estimate of $7.55. M&T is a high-quality bank with strong capital generation and growing pre-provision earnings, but current valuation keeps us on the sidelines."
For more ratings news on M&T Bank click here and for the rating history of M&T Bank click here.
Shares of M&T Bank closed at $87.21 yesterday.
FBR analyst says, "We reiterate our rating and price target for M&T equal to 2.5x 4Q11 TBV and 12.5x 2012 EPS. In 1Q11, M&T de-leveraged its balance sheet with a $750 million reduction in investment and trading securities, and its decision to resume selling the majority of its resi mortgage production. The goal of these actions is to manage capital ratios ahead of its Wilmington Trust acquisition, but they will also likely be reflected in lower earning assets in 2Q11. M&T declined to comment on plans for further reductions. Otherwise, 1Q trends were largely in line with expectations. We adjust our 2011 operating EPS estimate to $6.50 (from $6.45), and reiterate our 2012 estimate of $7.55. M&T is a high-quality bank with strong capital generation and growing pre-provision earnings, but current valuation keeps us on the sidelines."
For more ratings news on M&T Bank click here and for the rating history of M&T Bank click here.
Shares of M&T Bank closed at $87.21 yesterday.
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