Update (9:50 a.m.): Updated with Monday market open information.
NEW YORK (TheStreet) -- Credit Suisse upgraded BB&T (BBT) to "outperform" from "neutral" and set a $46.50 price target. The firm also increased estimates on the stock given higher loan growth and cost-cutting efforts.
The stock was down 0.6% to $37.17 at 9:49 a.m. on Monday.
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 increase in net income, expanding profit margins, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 124.2% when compared to the same quarter one year prior, rising from $240.00 million to $538.00 million.
- The gross profit margin for BB&T CORP is currently very high, coming in at 89.46%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.89% significantly outperformed against the industry average.
- Net operating cash flow has increased to $632.00 million or 35.91% when compared to the same quarter last year. In addition, BB&T CORP has also vastly surpassed the industry average cash flow growth rate of -86.11%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- BB&T CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BB&T CORP reported lower earnings of $2.18 versus $2.70 in the prior year. This year, the market expects an improvement in earnings ($3.00 versus $2.18).
- You can view the full analysis from the report here: BBT Ratings Report