Sterne Agee Maintains Buy, $13 PT on Fifth Third

Sterne Agee reiterates its Buy rating and price target of $13 per share on Fifth Third Bancorp (NASDAQ: FITB) after attending a management presentation.

Sterne Agee comments, “[E]xcess capital (8% long-term Tier 1 common target) and plans to be more aggressive with its 2012 capital management plans, including higher dividends and a share repurchase authorization given its current capital levels are in excess of fully phased in Basel requirements (2019). While the 2012 CCAR framework has yet to be established, management reiterated its goal for ongoing capital formation, 30% dividend payout and 20-30% share repurchases.”

FITB closed at 11.38 a share, up 0.17 percent, on Wednesday.