This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

7 Bank Stocks Loved by Deutsche Bank (Update 3)

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Shares of BB&T Corp. (BBT - Get Report) of Winston-Salem, N.C., closed at $29.65 Wednesday, returning 19% year-to-date. Based on a quarterly payout of 16 cents, the shares have a dividend yield of 2.16%.

The company on Friday agreed to purchase the life and P&C insurance operating divisions of Roseland, N.J.-based Crump Group from J.C. Flowers for $570 million in cash, saying the deal would "add approximately $300 million in annual revenue."

BB&T also has a deal in place to purchase BankAtlantic Bancorp's (BBX) main thrift subsidiary for a premium of $301 million to pick up 3.3 billion in deposits, spread across 78 South Florida branches.

O'Connor's price target for BB&T is $30.00.

Among the positives he sees for BB&T, O'Connor growing its commercial and industrial loans, along with "niche areas within its specialized lending segment," while also "growing small ticket consumer, prime auto, and commercial leasing which are smaller in size, but provide more granularity/geographic diversification to its portfolio." Even without the Crump insurance business, BB&T derived "$1b or 31% of core noninterest income in 2011" from its insurance business.

O'Connor also expects BB&T's credit expenses to continue to decline, estimating 2012 earnings of $2.49 a share in 2012, followed by EPS of $2.78 in 2013.

On the negative side, risks for BB&T investors include continued pressure on the company's net interest margin, as the company "continues to run off higher-yielding Colonial assets," acquired when BB&T bought the failed Colonial Bank of Montgomery, Ala., from the Federal Deposit Insurance Corp. in September 2009.

O'Connor also thinks there "may be little upside" to BB&T's dividend this year, because of the company's preference to deploy capital through "organic growth."

Interested in more on BB&T? See TheStreet Ratings' report card for this stock.
2 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $15.69 0.00%
BBT $36.42 -0.40%
C $51.06 -0.20%
JPM $62.03 0.02%
KEY $13.24 -0.34%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs