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FIG Partners upgrades BB&T


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FIG Partners upgrades BB&T


FIG Partners LLC analyst Christopher Marinac raised his ratingon Winston-Salem, N.C.-based BB&TCorp. to "outperform" from "market-perform," whilehe reiterated his 12-month price target of $39.25.

The analyst also maintained his EPS estimates at $2.82 for 2016and $3.25 for 2017.

Marianc noted that in light of the closing of the andSwett & Crawford Group in April, the Street revised its consensus EPS lower to reflect expected heavyexpenses and higher share count in the second quarter. However, Marinac thinks thatStreet consensus estimates are too conservative for 2017, which he believes is astronger period.

The analyst highlighted that BB&T reported a stronger returnon assets compared to most large-cap regional and national bank peers. However,in his view, short-term noise on EPS consensus along with investors' lack of patiencetoward cost improvements later in 2016 and early 2017 might affect the company'sprice to earnings multiple expansion.

Furthermore, he noted that the company's current price targethas a 16% upside to his 12-month price target, which he thinks is "sufficientfor further accumulation by new and existing investors."


Keefe Bruyette & Woods Inc. analyst Frank Barlow downgradedNew Albany, Ind.-based Your CommunityBankshares Inc. to "market-perform" from "outperform"but increased his price target to $39.50 from $37.00, following the company's dealannouncement.

The analyst maintained his 2016 and 2017 EPS estimates of $2.85and $3.06, respectively.

Barlow lowered his rating for the company to bring its recommendationand price target in line with Wheeling, W.Va.-based WesBanco Inc., after WesBanco agreed to acquire the companyin a $221.0 million deal. The analyst's current price target reflects the deal considerationof a 0.964x common share exchange ratio and $7.70 in cash for each Your Communityshare.

The analyst believes that the deal premium is well-deserved,given the recent cost saves from the FirstFinancial Service Corp. deal and Your Community's progress over a shortperiod of time. In addition, he is also happy about the expected EPS accretion andreasonable tangible book value per share earnback period for WesBanco.

Notable reiteration

Matt Olney, a Stephens Inc. analyst, reiterated his "overweight"rating and price target of $69 for Lafayette, La.-based IBERIABANK Corp., following the company's announcements ofa share buyback programand sale of preferred stock.

The analyst increased his 2016 and 2017 EPS estimates slightlyto $4.55 from $4.53 and to $4.94 from $4.93, respectively.

The analyst believes that these actions will be modestly accretiveto his 2017 EPS estimate. In addition, he noted that the company delivered impressivepositive operating leverage that helped it show notable improvement in its coreefficiency ratio.