Deutsche Bank Upgrades M&T Bank (MTB) to Buy

Deutsche Bank upgraded M&T Bank (NYSE: MTB) from Hold to Buy with a price target of $136.00 (from $117.00).

Analyst Matt O'Connor said, "MTB shares have lagged peers by 1,600bps since the start of 2013—mostly over concerns that the Hudson deal won’t close as well as a related increase in regulatory costs that have reduced EPS. However, we continue to believe the deal will close (likely in 4Q14), mgmt reiterated they expect the acquisition to still be accretive by a high-single digit percentage the first full year, our 2015E of $9.25 is 5% above consensus (of $8.80), and the stock currently trades at just a modest premium to peers (despite a very strong, long-term track record). Also, at a time when EPS estimates for most super regionals seem dependent on loan growth picking up and/or interest rates rising, MTB’s estimates seem achievable in a stable macro environment so long as the Hudson deal closes."

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 $122.99 yesterday.

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