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.

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

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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 TheStreet.com 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.

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