FBR Capital Sees Possible Upside for M&T Bank (MTB)

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Regional banker M&T Bank Corporation ( MTB ) saw its rating and price target reiterated on Monday by analysts at FBR Capital Markets, who noted that a well-structured merger for the company could provide substantial upside.

The firm left its "Market Perform" rating and $82 price target on MTB unchanged.

However, an FBR analyst commented, "Reiterate our Market Perform rating on MTB, but given our analysis of a possible merger between M&T and Sovereign, we note that a well-structured transaction could result in upside to current valuation, even after recent strength. If MTB issued stock to Santander to acquire Sovereign, we calculate sufficient accretion to earnings and tangible book value to support valuation between $90 and $110 for MTB shares."


M&T Bank shares were mostly flat in premarket trading Monday.

The Bottom Line
We put shares of MTB back on our recommended list on June 17, when the stock was trading at $81.93. The company has a 3.09% dividend yield, based on Friday's closing stock price of $81.93.

M&T Bank Corporation ( MTB ) is a "recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: MTB

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