FBR Capital Downgrades Synovus (SNV) to Underperform; High Risk

FBR Capital downgrades Synovus (NYSE: SNV) from Market Perform to Underperform; lowers price target to $2.50 from $3.00.

FBR analyst says, "Our downgrade is primarily driven by our new proprietary risk-adjusted valuation model, which we use as a tool to evaluate opportunities for achieving relative outperformance in the financials space. By our analysis, SNV is a high risk, low reward stock based on our expectations for FY 2011 ROTE. Given the significant losses SNV will face across its loan portfolio and particularly in its construction and development portfolio, in addition to the company's relatively lower earnings power and high earnings volatility, we believe the risk outweighs the reward on SNV shares. We are maintaining our 2009 and 2010 core EPS estimates of ($4.25) and ($2.00), respectively."

To see more analyst ratings on SNV Click Here.

Synovus Financial Corp. operates as the bank holding company.

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