Compass Point Maintains a 'Neutral' on M&T Bank (MTB); Raises Estimates on Accretive Deal
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Price: $146.90 -0.72%
Rating Summary:
12 Buy, 17 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
12 Buy, 17 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Compass Point maintains a 'Neutral' on M&T Bank (NYSE: MTB) price target of $95.00.
Analyst, MikeTurner, said, "Overall, the sale by Hudson City (Nasdaq: HCBK) should not be surprising to most as the low rate environment and high prepayment penalties on their high cost debt impaired profitability and subjected them to an abnormal amount of interest rate risk. Due to MTB's strong currency (2.1x TBV), the purchase of HCBK is economically attractive and broadens their deposit base into the Northeast. The purchase price of $7.22 is also in the range of our prior estimates. As detailed in this report, the deal is expected to be accretive to earnings/capital and TBV. Overall, we view the transaction positively and note that the announcement is consistent with our prior comments that the primary source of upside in owning MTB in the mid $80 level would have been the announcement of an accretive transaction."
For MTB, FY13 EPS estimate raised from $7.55 to $7.85. FY14 established at $8.38.
For an analyst ratings summary and ratings history on M&T Bank click here. For more ratings news on M&T Bank click here.
Shares of M&T Bank closed at $89.82 yesterday.
Analyst, MikeTurner, said, "Overall, the sale by Hudson City (Nasdaq: HCBK) should not be surprising to most as the low rate environment and high prepayment penalties on their high cost debt impaired profitability and subjected them to an abnormal amount of interest rate risk. Due to MTB's strong currency (2.1x TBV), the purchase of HCBK is economically attractive and broadens their deposit base into the Northeast. The purchase price of $7.22 is also in the range of our prior estimates. As detailed in this report, the deal is expected to be accretive to earnings/capital and TBV. Overall, we view the transaction positively and note that the announcement is consistent with our prior comments that the primary source of upside in owning MTB in the mid $80 level would have been the announcement of an accretive transaction."
For MTB, FY13 EPS estimate raised from $7.55 to $7.85. FY14 established at $8.38.
For an analyst ratings summary and ratings history on M&T Bank click here. For more ratings news on M&T Bank click here.
Shares of M&T Bank closed at $89.82 yesterday.
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