S&P CAPITAL IQ LOWERS OPINION ON SHARES OF BB&T CORP TO HOLD FROM BUY
(S&P Capital IQ) Print
We lower our 12-month target price by $5 to $40, 13.4X our 12-month forward EPS estimate of $2.99 and 2.1X tangible book value per share, multiples slightly above BBT's historical and peer multiples. BBT posts Q1 EPS of $0.69 vs. $0.29, matching our and Capital IQ consensus forecasts. On Q1 results, we see loan growth as not strong enough to offset downward pressure on net interest margin, leading to below-peer revenue growth in '14. We lower our '14 estimate to $2.89 from $3.07. Also, earnings are more dependent on reserve releases than at peers, a negative in our view.