BB&T Corp. (NYSE: BBT) was started as Outperform with a $44 price target (versus a $37.09 close) at Credit Suisse.
Would guess this opinion is based on the Fed starting to raise rates around June which would help the interest rate margin.
S&P CAPITAL IQ KEEPS BUY RECOMMENDATION ON SHARES OF BB&T CORP.
(S&P Capital IQ) Print
We lower our 12-month target by $1 to $40, 13.5X our '15 EPS estimate of $2.96, at the high-end of BBT's recent historical multiples. BBT reports Q4 EPS of $0.76 vs. $0.75, beating the Capital IQ consensus view of $0.73, on strong insurance brokerage revenues (up 10% from year-ago), investment banking (up 11%), and mortgage banking (up 28%). We see fee income growth staying strong. Net interest margin was stable, down only 0.02% from Q3. On our slightly lower loan growth outlook, we trim our '15 EPS estimate to $2.96 from $3.00, and our '16 estimate to $3.13 from $3.21.
On the surface, a .03 earnings beat looks pretty good on good expense control. Haven't seen the details but looks very positive today. Will be interesting to see what the analysts have to say.
In the world of the majors, analysts Phil Gresh and John Royall argue that companies with only a modest explore to U.S. shale fields need to focus on dividend coverage and manageable leverage. With that in mind, the pair initiated SunCor (SU) at overweight, citing “top tier sustainable dividend coverage and leverage, with some underlying growth potential,” and launched ConocoPhillips (COP) at underweight. Gresh and Royall downgraded Cenovus Energy (CVE) to neutral and remains neutral on Exxon and Chevron
Rafferty Capital Markets has lowered its rating for shares of BB&T Corp. to "hold" from "buy."
But despite the move, Richard Bove, vice president of equity research for Rafferty, remains positive about the Winston-Salem-based bank (NYSE: BBT) over the long term.
"While the next six months are expected to be lackluster in terms of company earnings, the next few years could be exciting," Bove wrote recently. "Longer term, this company has superior management, above average operating practices, and a positive outlook. I just do not want to buy yet."
Maybe 1/4 to 1/3 of a full position that you would consider buying. The price today is probably not a bad place to start.
Sentiment: Strong Buy
For a long term holder I think anything under $40 is buyable. Don't see a dividend cut as looks like plenty of cash & cash flow available. Would start buying but wouldn't buy the full position today.
Sentiment: Strong Buy
Good question. I took the all stock option & it looks like you did as well. Based on the cost value of the new KMI shares per my broker & adding in the cash received then dividing by my # of shares received in the conversion, my cost basis is $35.69 per share. The lower the better for my taxes for this year. I was surprised it was this low as I was expecting it to be around $40.
Once conversion occurs, what is the best approach for determining the conversion price? Is it the end of day price for the first trading day, average between the high & low price for the day, or something else? Forgive me if this has already been asked but haven't had much time to follow the board. Thanks & Happy Thanksgiving!
So very tragic for the CEO & 3 others that lost their life. Surprised that the snow plow driver survived. Would imagine he will be imprisoned. It just reminds me that we never know when its our last day on earth. My prayers are with the families.
Article today mentions 800 more employees or about 2% of BB&T's labor force will be laid off. Looks like the mortgage area will take a hit.
Lawsuit filed today by Irwin Berlin claiming the merger is unfair to KMP unit-holders. This could slow down the merger process where the merger will be delayed until 2015. Not sure how this will play out. A little surprised a suit had not been filed before this. Stay tuned.