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BB&T Corporation Message Board

  • ayscuew ayscuew Dec 31, 2007 3:22 PM Flag

    Deutsche Bank

    Has just downgraded BB&T. Says that the target price is $28 per share and that BB&T will earn $3.28 per share. That gives us a P/E of 8.5. A stock with this P/E should have a VERY STRONG BUY rating.

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    • Good post....As the sector recovers so will BB&T. Recovery from the high 20s to the mid to high 30s will be caused by general sentiment that the financial services industry is not failing. Yet, beyond that, newer high prices will be achieved upon expectation of a sale, which has regretably been thwarted by Mgmt's recalcitrant behavior for a decade...they truly believe they are smarter than every other set of bankers in the U.S. Even Allison mentioned in some presentation long ago how hard it is being in the "middle", between a small community bank and a big global bank. The model stalls when a bank gets to this level, its the same with all of the regionals.

    • I agree that the share price will probably stay between $29 and $37 per share over the next twelve months. The catalyst for a move to $40 plus would be a takeover. In my opinion BB&T is an excellent takeover target. I read the entire transcript of the earnings conference call on Thursday, January 17. They are in the best shape of any of the regional banks. They have the most stable and growing region in the U.S.A. BB&T will thrive over the next ten years. The Six percent dividend pays the shareholders to wait for improving growth or a buyout. They also have a very loyal employee and customer base to ride out the slower growth. EP

    • searchingforliberalintellect searchingforliberalintellect Jan 17, 2008 5:36 PM Flag

      Don't you get it

    • Remember, it's PEG that drives price, not P/E.

    • It's below $28.00 . It looks good at these prices.Buy the dividend and sell before the 15th or hold for the long term. NC market stronger than most. Have had my mortgage with BB&T for 15 years and they have not sold it yet.Refinanced 3 times and currently have 10 years of 15 year loan at 5%.

    • The write downs continue. So do you buy the DIV and hope they don't get hit too hard when they announce earnings for 4qtr. WB is rumored to write down 9 billon more.Wipes out 4th qtr earnings. BBT is not as leverged as WB , but will go along with all the banks.Stay tuned.

    • ANALysts are just that. They often are trying to help build or liquidate a position for the investment firm for which they work or clients. Slippery dicks might be a better term for them but then... what they do is legal... people should never be fooled... the fact is they usually say "buy" when you should sell, and they say "sell' when you should buy. That is a sad reality!

    • Over the last 10 years, the lowest p/e multiple on BBT has been 11. Using Deutsche bank's own earnings estimate, you would arrive at a target price of $36.08.

      I think 28 is a unrealistic target price for BBT. BBT has a long and predictable history of raising their dividend. I expect a dividend increase in July to .50/share. That would give investors a 6.4 percent yield. In a company with growing earnings and the strongest tier 1 capital ratio of any big bank.

      BBT should be trading at a premium.

      • 3 Replies to phaider
      • Dividends are obviously a key topic here.

        NCC just cut dividend by 49% - stock drops close to 5%.

        What are the chances BB&T will make the extraordinary move and forego their history of ever increasing dividends? If so, $28 does not seem all that far-fetched.

      • BBT allowance for loans and lease losses is almost twice as large as their nonperforming loans which only amount to 61 bsp. Their interest rate spread is still 291 bsp, significantly higher than most of their peers. Almost all of their mortgage backed securities are triple A and are backed by government entities so the possibility of significant writedowns is remote.

        Compared to Suntrust for example, BBT is a shining star. Sti's allowance for loans and lease losses is only 90% of their nonperforming assets which amount to 97 bsp, 60% worse than BBT. Their interest rate spread is only 246 bsp. Plus Sti may have cdo and mbs exposure, sells for a nifty 12 times earnings and sports a below average dividend yield.

        Hope BBT continues to go down so I can continue to add to my position. But I doubt that will happen. BBT most likely has bottomed out and will revert back to its historical p/e in 2008. The analyst for D/B is either incompetent or is following marching orders from his superiors in an attempt to artificially suppress the stock.

      • So what you are saying is that even when BB&T was trading at $40 or much higher, it was way overvalued. That's just great, so it has been a NON-GROWTH, VALUE DESTROYING STOCK FOR 10 YEARS, regardless of the trading profile. So its fully valued at $36, not $46, which is what every dope on this Board thinks and it truly is a worthless POS run by a bunch of rednecks....hey, you may be right. Unwittingly, you are saying the right thing.

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