Recent Investment Analysts’ Ratings Updates for SunTrust (STI)
SunTrust (NYSE: STI) received a number of price target changes and ratings updates during the last week:
- SunTrust was downgraded by analysts at Compass Point from a “buy” rating to a “neutral” rating. They now have a $30.00 price target on the stock, up previously from $29.00. They wrote, “STI has outperformed on the heels of its announced capital actions (Sep-6) and has been bolstered by the larger than expected QE3 announcement. Going forward, earnings should be supported by strong mortgage banking (near-term) as well as a material drop in mortgage putback provision. In order for the stock to outperform our expectation, the company would need to achieve their targeted 60% efficiency ratio which we view as a stretch in this extended period of low rates. Alternatively, we note that the roll off of swap-related income starting in 2Q13 will serve as a modest headwind to net interest income growth. We are increasing our price target by $1 to $30 due to a lower required return.”
- SunTrust had its “outperform” rating reaffirmed by analysts at Wells Fargo & Co..
- SunTrust had its “outperform” rating reaffirmed by analysts at Raymond James. They now have a $31.00 price target on the stock.
- SunTrust had its price target raised by analysts at JPMorgan Chase from $31.50 to $33.50. They now have an “overweight” rating on the stock. They wrote, “SunTrust should be one of the biggest beneficiaries from housing market recovery among our banks. SunTrust has had an unusually large drag from mortgage related issues on several fronts versus peers. As the housing market recovers, SunTrust’s earnings should show strong benefit. In addition, we expect management to remain focused on lowering expenses and improving efficiency ratio. Valuation is also attractive as STI trades below regional peers based on tangible book multiple. Therefore, we rate SunTrust Overweight relative to our coverage universe because we expect greater benefit from housing related recovery—and acquisition risk is likely to be less than peers.”
- SunTrust had its price target raised by analysts at Citigroup from $24.00 to $29.00. They now have a “neutral” rating on the stock. They wrote, “After the KO equity and loan sales earlier in 3Q12, we note that there is a wide dispersion in estimates for 3Q12. It appears as if some analysts are including the impact of the KO sale while others are not. We are including the impact of the KO sale. We model core PTPP up ~6% q/q driven primarily by higher mortgage banking income. We note that our EPS estimates include the impact of the KO sale, our core PTPP calculation excludes the benefit from the sale, costs associated with loan sales, mortgage repurchase provision and environmental costs above and beyond what we consider a normal run rate.”
- SunTrust had its “neutral” rating reaffirmed by analysts at Zacks. They now have a $30.00 price target on the stock. Zacks‘ analyst wrote, “SunTrust’s second quarter 2012 results were marginally ahead of the Zacks Consensus Estimate. Lower provision for credit losses along with top-line growth lifted the results. Also, the quarter witnessed stable capital ratios and improved asset quality. Nevertheless, a surge in operating expenses was the primary dampener. We believe that better average client deposits, robust credit quality and favorable deposit mix are amongst the company’s key strengths. Its recent acquisitions and cost-cutting initiatives are encouraging despite the persistently low interest rate environment, sluggish economic recovery and overall industry challenges. However, we are concerned about SunTrust’s exposure to risky assets, limited margin improvement and continued regulatory pressures.”
- SunTrust had its “buy” rating reaffirmed by analysts at Jefferies Group. They now have a $33.00 price target on the stock.
Shares of SunTrust traded up 2.27% during mid-day trading on Wednesday, hitting $29.28. SunTrust has a 52 week low of $15.79 and a 52 week high of $30.79. The company has a market cap of $15.634 billion and a P/E ratio of 19.23.
SunTrust Banks, Inc. (SunTrust) is a commercial banking organization. The Company is a diversified financial services holding company whose businesses provide a range of financial services to consumer and corporate clients.