Nomura Securities on U.S. Banks: WFC and STI Upgraded to 'Buy', USB & PNC Downgraded to 'Neutral'
Tweet
Share
E-mailGet Alerts FITB Hot Sheet
Price: $34.09 -1.53%
Rating Summary:
13 Buy, 23 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 14 | New: 50
Rating Summary:
13 Buy, 23 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 14 | New: 50
Join SI Premium – FREE
Nomura Securities on U.S. Banks: WFC and STI Up to Buy, USB & PNC Down to Neutral
Analyst, Brian Foran, said, "We think HARP v2.0 is going to be a much bigger revenue tailwind to banks than the market realizes, due to better volumes and higher gain on sale. As a result, the big mortgage banks have a dual tailwind: 1) numbers are too low for the next few quarters, and 2) they have an unexpected revenue tailwind which provides flexibility to execute on efficiency initiatives. As a result, we reiterate our Buy on Fifth Third (Nasdaq: FITB), and upgrade Wells Fargo (NYSE: WFC) and SunTrust (NYSE: STI) to Buy from Neutral. To make room in our ratings distribution, we downgrade US Bank (NYSE: USB) and PNC (NYSE: PNC) from Buy to Neutral."
Also, FITB was added to the Nomura U.S. Conviction Buy List and PNC was removed.
On WFC: TP from $30 to $38; 2012E / 2013E EPS from $3.00 / $3.30 to $3.35 / $3.50 vs. Street at $3.18 / $3.63, respectively.
On STI: TP from $22.5 to $29; 2012E / 2013E EPS from $1.65 / $2.75 to $1.80 / $2.75 vs. Street at $1.72 / $2.64, respectively.
On USB: TP from $31 to $33; 2012E / 2013E EPS from $2.70 / $2.90 to $2.80 / $3.00 vs. Street at $2.67 / $2.94, respectively.
On PNC: TP remains $65; 2012E / 2013E EPS from $6.35 / $6.50 to $6.45 / $6.50 vs. Street at $6.13 / $6.71, respectively.
Analyst, Brian Foran, said, "We think HARP v2.0 is going to be a much bigger revenue tailwind to banks than the market realizes, due to better volumes and higher gain on sale. As a result, the big mortgage banks have a dual tailwind: 1) numbers are too low for the next few quarters, and 2) they have an unexpected revenue tailwind which provides flexibility to execute on efficiency initiatives. As a result, we reiterate our Buy on Fifth Third (Nasdaq: FITB), and upgrade Wells Fargo (NYSE: WFC) and SunTrust (NYSE: STI) to Buy from Neutral. To make room in our ratings distribution, we downgrade US Bank (NYSE: USB) and PNC (NYSE: PNC) from Buy to Neutral."
Also, FITB was added to the Nomura U.S. Conviction Buy List and PNC was removed.
On WFC: TP from $30 to $38; 2012E / 2013E EPS from $3.00 / $3.30 to $3.35 / $3.50 vs. Street at $3.18 / $3.63, respectively.
On STI: TP from $22.5 to $29; 2012E / 2013E EPS from $1.65 / $2.75 to $1.80 / $2.75 vs. Street at $1.72 / $2.64, respectively.
On USB: TP from $31 to $33; 2012E / 2013E EPS from $2.70 / $2.90 to $2.80 / $3.00 vs. Street at $2.67 / $2.94, respectively.
On PNC: TP remains $65; 2012E / 2013E EPS from $6.35 / $6.50 to $6.45 / $6.50 vs. Street at $6.13 / $6.71, respectively.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Stifel Upgrades Barry Callebaut AG (BARN:SW) (BYCBF) to Buy
- Oppenheimer Upgrades Avalo Therapeutics (AVTX) to Outperform following AVTX-009 acquisition
- UBS Upgrades Rivian Automotive Inc (RIVN) to Neutral, 'More balanced at current levels'
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Downgrades, UpgradesRelated Entities
Goldman Sachs Conviction Buy List, Nomura, Wells FargoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
