S&P CAPITAL IQ KEEPS HOLD RECOMMENDATION ON SHARES OF BB&T CORP.
(S&P Capital IQ) Print
We lower our target price by $2 to $38, an above peer 12.8X our forward four quarters EPS estimate of $2.97. Peer median multiple is 12.0X, and BBT has traded at an average of 12.6X in last 12 months. BBT reports Q2 EPS of $0.58 vs. $0.77 (GAAP) and $0.70 vs. $0.79 (operating), missing our $0.77 forecast and the Capital IQ consensus view of $0.75. One-time mortgage-related and tax reserve adjustments reduced EPS by $0.12, but BBT is facing strong net interest margin pressure. We cut our '14 EPS estimate to $2.74 from $2.89 and our '15 EPS estimate to $3.00 from $3.34.