Compass Point Bumps Price Target on BB&T (BBT) Post Q4 Results

Compass Point maintained its Neutral on BB&T Capital (NYSE: BBT) but raised its price target from $32 to $34 following Q4 results. The firm also raised FY13 EPS estimate from $2.85 to $2.95 due to lower non-interest expenses. FY14 EPS estimate remains $3.10.

The firm comments, ". The stock rallied 2% primarily due to a material drop in noninterest expense, higher than expected net interest income and positive commentary from management. Excluding the effects of higher mortgage origination volume and seasonally strong insurance brokerage, non-interest expense showed a material decline from the previous quarter. Management also made positive commentary about pent-up demand for loans in BBT's key markets of Florida and Georgia. While these developments are positive for the long-term outlook of the bank, we believe the stock will have difficulty breaking out from current levels given the expectation for sub-par loan growth, a slowdown in mortgage banking income and a continued decline in NIM. If there is evidence BBT can overcome some of these headwinds, we would likely be more positive on the stock given the company's diversified business model, strong credit metrics and leverage to economic growth."

For an analyst ratings summary and ratings history on BB&T Capital click here. For more ratings news on BB&T Capital click here.

Shares of BB&T Capital closed at $30.89 yesterday.

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