This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

3 'Quite Attractive' Regional Bank Value Plays from UBS

KeyCorp
Shares of KeyCorp (KEY - Get Report) of Cleveland closed at $7.46 Monday, down 2% year-to-date, following a 12% decline during 2011.

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

Get Adobe Flash player

Based on a five-cent quarterly payout, the shares have a dividend yield of 2.68%.

The shares trade for 0.8 times their reported March 31 tangible book value of $9.28, and for nine times the consensus 2013 earnings estimate of 81 cents. The consensus 2012 EPS estimate is 77 cents.

UBS's price target for KeyCorp is $10, and the firm on Monday left unchanged its 2012 EPS estimate of 83 cents and its 2013 estimate of 95 cents.

In contrast to many regional banks facing declining net interest margins as short-term rates remain near zero and long-term rates for new loans and investment securities continue to decline, Scinicariello said that "KEY has opportunities to increase its NIM as higher costing CDs and liabilities are further reduced." For the second quarter, UBS "conservatively" projects "a flat NIM at 3.16% but forecasts a ramp to 3.23% by 4Q12." Expected redemptions of $700 million in trust preferred shares during the third quarter should "be 5% accretive on an annualized basis."

UBS projects roughly "4% growth for 2012 and outperformance in this area would be a significant positive, in our view."

KeyCorp's board of directors authorized a $344 million stock buyback plan in March, and Scinicariello expects "$127.5MM of buybacks this quarter."

Interested in more on KeyCorp? See TheStreet Ratings' report card for this stock.

2 of 4

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BAC $15.98 1.10%
C $53.36 1.80%
CMA $46.04 0.57%
FITB $19.45 0.46%
KEY $14.00 0.54%

Markets

DOW 18,242.48 +109.78 0.61%
S&P 500 2,113.92 +9.42 0.45%
NASDAQ 4,999.9710 +36.4440 0.73%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs