- Mosby downgraded BB&T (BBT) to a neutral rating from a "Buy" rating, while leaving his price target unchanged at $34, saying that that BB&T's closing price on Tuesday of $31.37 already reflects the Winston-Salem, N.C., lender's earnings potential for 2013. BB&T's shares have returned 25% year-to-date, and the shares trade for 11 times the consensus 2013 earnings estimate of $2.96 a share, among analysts polled by Thomson Reuters. Mosby estimates BB&T will earn $2.60 a share this year, followed by EPS of $3.07 in 2013.
- Guggenheim downgraded SunTrust (STI) of Atlanta to neutral from "Buy," with an price unchanged price target of $26, with Mosby also saying the company's 2013 EPS potential was baked-into the share price. SunTrust has returned 40% year-to-date, closing Tuesday at $24.65. The shares trade for nine times the consensus 2013 EPS estimate of $2.69. Mosby estimates the lender will earn $1.80 a share during 2012, followed by 2013 EPS of $2.25.
- Mosby also downgraded M&T Bank (MTB) of Buffalo, N.Y., to a neutral rating from a "Buy," while raising his price target by a dollar to $96, saying that "M&T Bank continues to be a safe haven with little downside, in our view, but as the economy continues to improve we would value this downside protection less." M&T returned 14% year-to-date through Tuesday's close at $86.26. The shares trade for 12 times the consensus 2013 EPS estimate of $7.39. Mosby estimates M&T will earn $6.95 a share this year, followed by 2013 EPS of $8.00.
5 Buy-Rated Banks From Guggenheim
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