Jefferies analyst Ken Usdin rates SunTrust a "Buy," with a $33 price target, and said last Tuesday that "different treatment of the Coke gain across the Street makes it hard to speak to the headline EPS number, but we believe core trends should look good." Jefferies expects "continued strength out of mortgage (only a $3mm decline in production), progress on expenses, and a stable [net interest margin] excluding the impact of the Coke sale (3bp drag).
Usdin added that the company's "details on loan sales and subsequent reinvestment will be of interest, as it will dictate the 4Q starting point for net interest income."
Deutsche Bank analyst Matt O'Connor rates SunTrust a "Hold," and said last Monday that he expects the company to report third-quarter earnings of $1.96 a share, with "flat/modestly higher loan growth in 3Q--reflecting continued growth in [commercial and industrial loans], offset by recently announced loan sales (likely to take place over the next few quarters) and declines in higher-risk segments such as [commercial real estate], home equity and mortgage."
O'Connor expects another strong quarter for revenue from mortgage originations and sales, but said "this should be more than offset by the large $375m mortgage putback charge this quarter."
Interested in more on SunTrust? See TheStreet Ratings' report card for this stock.
Written by Philip van Doorn in Jupiter, Fla.