Citi Upgrades Synovus Financial (SNV) to Buy

February 23, 2009 8:29 AM EST
Citi upgrades Synovus Financial Corp (SNV) from Hold to Buy. Price target lowered from $8 to $5.

Citi analyst says, "Our cumulative loss analysis shows that Synovus has among the highest TCE ratios both currently and under our “stress test”, but its stock price valuation is below average (0.5X “stressed” tangible common, vs. 0.8X for the group mean and in line with the group median). We believe the apparent under-pricing creates an opportunity for above average investment returns...We expect SNV to turn profitable late in 2010. We see a $1.35/sh loss in 2009 ($0.45 previously), and a loss of $0.35 (vs. EPS of $0.50 before) and we have established a $0.75 EPS estimate for 2011."

Synovus Financial Corp. is a diversified financial services company.

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