NEW YORK (TheStreet) -- BB&T's (BBT) - Get BB&T Corporation Report 2015 earnings estimates were lowered to $2.81 from $2.82 at BMO Capital, while 2016 earnings estimates were raised to $3.33 from $3.30 per share.
The firm reiterated its "market perform" rating and a price target of $44.
BB&T announced a definitive agreement to acquire PA-based National Penn Bancshares (NPBC) on Monday for $1.8 billion.
"This acquisition confirms that PA or Mid-Atlantic has become a key geography for BB&T's growth, in addition to the Southeast and Texas," BMO Capital analysts said.
Further, the National Penn Bancshares deal will deploy roughly half of its $820 million buyback or acquisition capital approved, meaning there will be no buybacks in the second half of 2015, the firm added.
BB&T, based in Winston-Salem, NC, is a financial holding company that offers consumer and commercial banking, securities brokerage, asset management, mortgage, and insurance products and services.
Shares of BB&T are down 0.59% to $39.86 in afternoon trading.
Separately, TheStreet Ratings team rates BB&T CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BB&T CORP (BBT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- BBT's revenue growth has slightly outpaced the industry average of 3.0%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 6.5% when compared to the same quarter one year prior, going from $461.00 million to $491.00 million.
- Net operating cash flow has significantly increased by 156.73% to $629.00 million when compared to the same quarter last year. Despite an increase in cash flow of 156.73%, BB&T CORP is still growing at a significantly lower rate than the industry average of 776.02%.
- The gross profit margin for BB&T CORP is currently very high, coming in at 89.19%. Regardless of BBT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 19.37% trails the industry average.
- You can view the full analysis from the report here: BBT Ratings Report