UPDATE: Piper Sandler Upgrades M&T Bank (MTB) to Overweight
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Piper Sandler analyst Frank Schiraldi upgraded M&T Bank (NYSE: MTB) from Neutral to Overweight with a price target of $190.00 (from $170.00).
The analyst commented, "M&T reported 4Q21 EPS of $3.37, and we peg core at $3.48. The beat reflected continued reserve release ($0.19∆). Revenues beat our modeling by $0.16, but were driven by a $30M distribution from Bayview, which we don't believe were in models. Otherwise, revenues were largely in-line. Post-earnings, the driver of share underperformance was the 2022 guidance given on the conference call. Into the quarter, bulls looked at M&T's significant excess cash position as an opportunity, and from that standpoint NII guidance for down low-to-mid single-digits was disappointing. That said, the sell-off brings M&T into line with peers on an earnings basis versus its historic 1.5x multiple premium. Though planned near-term cash deployment was disappointing, excess cash means significant latent earnings power remains, and we expect over the next 12 months, hopefully sooner, investors begin looking past 2022 toward 2023 expectations."
Shares of M&T Bank closed at $160.11 yesterday.
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