Nomura Securities Starts M&T Bank (MTB) at Buy

Nomura Securities initiates coverage on M&T Bank (NYSE: MTB) with a Buy rating and a price target of $146.00.

Analyst Bill Carcache comments, "Although MTB shares had historically outperformed the market, they have lagged over the past 16 months, as Bank Secrecy Act (BSA) and Anti Money Laundering (AML) issues have driven expenses higher and delayed the closing of the HCBK acquisition. Looking ahead, we believe MTB will receive regulatory approval to proceed with the acquisition by the end of this year, and we expect to see meaningful operating efficiency improvements as we approach the end of 2014. At current levels, we believe MTB shares are trading at a significant discount to their intrinsic value and expect to see meaningful share price appreciation through 2015. We are initiating coverage with a Buy rating and $146 target price, which implies 2.3x our estimate of 2015 pro-forma TBVPS of $64.03 and 15.4x our 2015 pro-forma EPS of $9.48."

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 $121.97 yesterday.

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