Weekly Analysts’ Ratings Changes for Fifth Third Bancorp (FITB)
Fifth Third Bancorp (NASDAQ: FITB) received a number of price target changes and ratings updates during the last week:
- Fifth Third Bancorp had its “outperform” rating reaffirmed by analysts at Wells Fargo & Co..
- Fifth Third Bancorp had its “neutral” rating reaffirmed by analysts at Zacks. They now have a $16.00 price target on the stock. Zacks‘ analyst wrote, “Fifth Third reported better-than-expected earnings in the second quarter of 2012, aided by gains on the valuation of warrant that it holds in Vantiv Inc. Excluding that gain, earnings also topped the Zacks Consensus Estimate. It experienced a year-over-year increase in mortgage banking income while provisions for loan losses reported a decline. Revenue was better-than-expected, credit metrics improved while growth in retained earnings attributed to Fifth Third’s improved capital ratios. Recently, Fifth Third hiked its dividend and announced a new share repurchase authorization following the Fed’s nod after review of its resubmitted capital plan, justifying its capital strength. Also, its traditional commercial banking franchise, diverse revenue mix and improved asset quality serve as positive catalysts. However, pressure on net interest margin amidst a low interest rate environment, regulatory headwinds, competitive pressure and anticipated rise in repurchase expense would temper any robust improvement in profitability.”
- Fifth Third Bancorp had its price target raised by analysts at JPMorgan Chase from $17.50 to $18.00. They now have a “neutral” rating on the stock. They wrote, “Fifth Third’s credit outlook continues to improve and has been a large driver of earnings growth but earnings recovery has slowed a little partly due to relatively lesser benefit from fee-based businesses. Fifth Third’s EPS growth is likely to be driven by moderate loan growth, continued sizable loan loss reserve releases, and share buybacks near-term. We eventually expect more M&A in the industry given slow revenue growth and Fifth Third is likely to be a buyer, but there are currently limited sellers, in our view. In addition, FITB’s stock valuation is close to the peer average. Therefore, we rate Fifth Third Neutral on a relative basis to our coverage universe as we view FITB’s stock as fairly valued.”
- Fifth Third Bancorp had its price target raised by analysts at Citigroup from $15.00 to $16.00. They now have a “neutral” rating on the stock. They wrote, “We are increasing our 3Q12 EPS estimate from $0.37 to $0.38 (vs consensus of $0.38) on higher mortgage revenues as volumes remain strong and gain on sale margins appear to improve. Note our estimate include a $27 mil (2c hit) TRuPs redemption charge per guidance at 2Q. We forecast reported PTPP of $600 mil (ex TruPs charge) vs mgmt’s estimate of in the $585 mil range…FITB’s resubmitted capital plan received approval in late August which allowed for potential share buybacks of up to $600 million through 1Q13 and a dividend increase from 8c to 10c now officially approved by the Board…We model share repurchases of ~$350 million in 3Q12 as we expect the share repurchase transaction to be fully executed (90-95% compLeted on August 28) leaving Basel 3 Tier 1 Common to remain flattish at ~9.0% in 3Q.”
- Fifth Third Bancorp was downgraded by analysts at Keefe, Bruyette & Woods from an “outperform” rating to a “market perform” rating. They now have a $17.00 price target on the stock. They noted that the move was a valuation call. They noted that the move was a valuation call.
- Fifth Third Bancorp was downgraded by analysts at Wells Fargo & Co. from an “outperform” rating to a “market perform” rating. They noted that the move was a valuation call. They noted that the move was a valuation call.
- Fifth Third Bancorp had its “buy” rating reaffirmed by analysts at Jefferies Group. They now have a $16.50 price target on the stock.
Fifth Third Bancorp opened at 15.705 on Thursday. Fifth Third Bancorp has a 52-week low of $10.32 and a 52-week high of $15.95. The company has a market cap of $14.432 billion and a price-to-earnings ratio of 9.92.
Fifth Third Bancorp (the Bancorp) is a diversified financial services company. As of December 31, 2011, the Bancorp had $117 billion in assets, operated 15 affiliates with 1,316 full-service Banking Centers, including 104 Bank Mart locations open seven days a week inside select grocery stores, and 2,425 automated teller machines (ATMs) in 12 states throughout the Midwestern and Southeastern regions of the United States.