Regional banker BB&T Corporation ( BBT ) on Friday saw its rating and price target boosted by analysts at Janney Montgomery Scott.
The firm said it upgraded BBT from "Neutral" to "Buy" and lifted its price target from $30 to $33. That new target suggests a 23% upside from the stock's Thursday closing price of $26.54.
A JMS analyst commented, "We raise our rating to BUY for BB&T, because the company is trading at a lower price to earnings ratio than underperforming peers despite being better positioned to benefit from an improving economy and higher interest rates. BB&T's pretax pre-provision return on assets is one of the best among large banks, which bodes well when credit costs decline. Earnings will likely be enhanced by accretive acquisitions once sellers' expectations decline after a recent flurry of pricey deals."
BB&T shares were mostly flat in premarket trading Friday.
The Bottom Line
Shares of BB&T ( BBT ) have a 2.26% dividend yield, based on last night's closing stock price of $26.54. The stock has technical support in the $22-$24 price area. If the shares can firm up, we see overhead resistance around the $29-$30 price levels.
BB&T Corporation ( BBT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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