Shares of SunTrust of Atlanta closed at $23.75 Friday, returning 34% year-to-date, following a 40% decline during 2011.
The shares trade just above tangible book value and for nine times the consensus 2013 EPS estimate of $2.66. The consensus 2012 EPS estimate is $1.90.
Ken Usdin's price target for SunTrust is $27.00.Harmon said that economic trends in the Atlanta area "appear to be improving, however, as home prices are showing signs of flattening after years of declines," and that "manufacturing and employment data is improving as well, further strengthening the cause for a bottom in housing." Harmon added that "a potential bottom in housing is very important for SunTrust given its exposure to residential real estate," and that "through charge-offs, mortgage repurchase expense, and other environmental costs, SunTrust has potential earnings leverage of $1.00+." Interested in more on SunTrust? See TheStreet Ratings' report card for this stock.