How Will M&T Bank (MTB) Stock React To This Analyst Upgrade?

NEW YORK (TheStreet) -- M&T Bank  (MTB) was raised to "outperform" from "market perform" at Keefe, Bruyette & Woods  (KBW) with a $ 141 price target, up from $125.

M&T Bank shares closed at $122.06 on Friday.

Separately, TheStreet Ratings team rates M & T BANK CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate M & T BANK CORP (MTB) 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 expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The gross profit margin for M & T BANK CORP is currently very high, coming in at 92.01%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 23.87% trails the industry average.
  • MTB, with its decline in revenue, slightly underperformed the industry average of 5.1%. Since the same quarter one year prior, revenues slightly dropped by 5.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • In its most recent trading session, MTB has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
  • M & T BANK CORP's earnings per share declined by 22.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, M & T BANK CORP increased its bottom line by earning $8.20 versus $7.54 in the prior year. For the next year, the market is expecting a contraction of 6.8% in earnings ($7.65 versus $8.20).
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Commercial Banks industry average. The net income has decreased by 18.4% when compared to the same quarter one year ago, dropping from $348.47 million to $284.34 million.
  • You can view the full analysis from the report here: MTB Ratings Report
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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