Compass Point Reiterates a 'Buy' on CIT Group (CIT); Adjusting Estimates
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Price: $53.50 --0%
Rating Summary:
12 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
12 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Compass Point reiterates a 'Buy' on CIT Group (NYSE: CIT) price target of $41.00.
Analyst, Mike Turner, said, "Underlying trends remain strong as origination growth was up 54% Y/Y, credit quality continued to improve and funding cost are coming down. Since quarter end, the company announced another $2.0B repayment of their 7.0% Series C notes and issued $2.0B of new notes in the low 5% range. Absent a fallout in the credit markets, we believe the company appears on track to achieve an investment grade rating by later this year. Futher, we expect the removal of the Fed's written agreement could be announced within the next several months. The absence of the written agreement won't provide any operational enhancements overnight, though it would open the door to share repurchases. Regulators should be expected to err on the side of caution with CIT and management has been clear that a return of capital is not to be expected in 2012, however, we wouldn't completely rule out the possibility. Thus, the event should be viewed as neutral with upside potential based on current expectations."
Turner cuts FY12 EPS estimates from $0.98 to -1.38, starts FY13 at $2.70.
For an analyst ratings summary and ratings history on CIT Group click here. For more ratings news on CIT Group click here.
Shares of CIT Group closed at $36.45 yesterday.
Analyst, Mike Turner, said, "Underlying trends remain strong as origination growth was up 54% Y/Y, credit quality continued to improve and funding cost are coming down. Since quarter end, the company announced another $2.0B repayment of their 7.0% Series C notes and issued $2.0B of new notes in the low 5% range. Absent a fallout in the credit markets, we believe the company appears on track to achieve an investment grade rating by later this year. Futher, we expect the removal of the Fed's written agreement could be announced within the next several months. The absence of the written agreement won't provide any operational enhancements overnight, though it would open the door to share repurchases. Regulators should be expected to err on the side of caution with CIT and management has been clear that a return of capital is not to be expected in 2012, however, we wouldn't completely rule out the possibility. Thus, the event should be viewed as neutral with upside potential based on current expectations."
Turner cuts FY12 EPS estimates from $0.98 to -1.38, starts FY13 at $2.70.
For an analyst ratings summary and ratings history on CIT Group click here. For more ratings news on CIT Group click here.
Shares of CIT Group closed at $36.45 yesterday.
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