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Comerica, BB&T Downgraded at KBW Research (CMA, BBT)
12/16/2010 8:57:00 AM
Regional bankers Comerica Incorporated ( CMA ) and BB&T Corporation ( BBT ) on Thursday both caught downgrades from analysts at Keefe, Bruyette & Woods.
The firm said it cut its rating on CMA from "Outperform" to "Market Perform" with a $44 price target. That target implies a small upside to the stock's Wednesday closing price of $40.24.
A KBW analyst commented, "We continue to believe that CMA will be able to deploy its excess capital, as we have already seen from the dividend increase and reauthorization of the buyback, but believe the shares currently warrant a Market Perform rating as there is roughly 11% potential upside to our price target, including the 2% dividend yield."
Meanwhile, Keefe, Bruyette & Woods also downgraded BBT from "Outperform" to "Market Perform," saying "BBT shares have increased 14% in December and have come in line with our price target. We believe that BBT still has significant strategic advantages versus other large cap names, but with a weak economy and now trading at 8.2x or 2013 EPS estimate and 1.8x tangible book value, we believe the shares are fairly valued."
Both Comerica and BB&T shares were mostly flat in premarket trading Thursday.
The Bottom Line
Comerica Incorporated ( CMA ) and BB&T Corporation ( BBT ) are both rated "Neutral," holding Dividend.com DARS™ Ratings of 3.2 out of 5 stars.