BB&T Remains Neutral - Analyst Blog
March 15 2013 - 6:50AM
Zacks
On Mar 14, 2013, we reiterated our long-term recommendation on
BB&T Corporation (BBT) at Neutral. This
reflects BB&T’s fourth quarter earnings, which were marginally
ahead of the Zacks Consensus Estimate.
Why Neutral?
BB&T’s fourth quarter 2012 earnings came in at 71 cents,
surpassing the Zacks Consensus Estimate by a penny.
Better-than-expected results were primarily driven by growth in top
line and reduced operating expenses, partially offset by slightly
higher provision for credit losses. Also, improved credit quality
as well as stable capital ratios were impressive.
Following the fourth-quarter results, the Zacks Consensus Estimate
for 2013 has inched up 0.3% to $2.94 per share over the last 60
days. Yet, the Zacks Consensus Estimate for 2014 has remained
stable at $3.14 per share in the same time frame. Hence, BB&T
currently has a Zacks Rank #3 (Hold).
BB&T remains focused on its organic growth strategy, which is
evident from its increase in client deposits and net interest
income. Further, BB&T is focused on its inorganic growth
strategy, thereby expanding its revenue streams and its market
share by acquisitions in both 2011 and 2012. The company intends to
pursue more acquisitions to enhance its banking network and improve
top line.
Despite improvements being witnessed in credit metrics in 2012,
credit quality still remains a cause of concern. Moreover, a
sluggish economic recovery along with wide exposure to problem
assets and various regulatory issues might pose a problem for
BB&T to considerably improve its financials going forward.
Other Major Banks to Consider
While we prefer BB&T, other major banks worth a look include
BankUnited, Inc. (BKU), Comerica
Incorporated (CMA) and State Street
Corporation (STT). All these carry a Zacks Rank #2
(Buy).
BB&T CORP (BBT): Free Stock Analysis Report
BANKUNITED INC (BKU): Free Stock Analysis Report
COMERICA INC (CMA): Free Stock Analysis Report
STATE ST CORP (STT): Free Stock Analysis Report
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