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

BB&T Is a 'Top Pick' for Investors: Citi

BB&T will report its second-quarter results on July 18. The consensus among analysts polled by Thomson Reuters is for the company to report earnings of 74 cents a share, increasing from 72 cents both in the first quarter and during the second quarter of 2012.

Horowitz estimates second-quarter EPS of 75 cents, expecting the company to beat the consensus "primarily on higher fee revenues with possibly better-than-expected insurance results." His full-year EPS estimate of 2013 is $2.50. The analyst on Sunday raised his 2014 EPS estimate for BB&T by a nickel to $3.15, which is slightly above the consensus EPS estimate of $3.11. Horowitz raised his 2015 EPS estimate by 15 cents to $3.60, which is out in front of the consensus 2015 EPS estimate of $3.37.

Based on the increased earnings estimates for 2014 and 2015 "on higher future rates incorporated in our forward yield curve," Horowitz raised his price target for BB&T to $40 from $30.00. That implies 15% upside over the next 12 months.

"We expect core PTPP growth of 6% y/y, driven by a 2% increase in revenues and flattish y/y expenses," Horowitz wrote. PTPP stands for "pre-tax, pre-provision" earnings. The provision for credit losses is the amount added to or taken from loan loss reserves each quarter, directly affecting the bottom line.

Horowitz expects higher property and casualty insurance prices to support 5% year-over-year growth for BB&T's insurance revenue, which totaled $365 million, or 15% of BBT's PTPP income during the first quarter. BB&T greatly expanded its insurance operations with the acquisition of Crump Group in April 2012.

BBT Chart BBT data by YCharts

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

-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
2 of 2

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
BBT $34.83 -1.64%
MTB $116.69 -1.90%
WFC $50.00 -1.17%
AAPL $95.18 1.64%
FB $117.43 -0.96%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs