UPDATE: Citigroup Raises PT to $29 on BB&T, Maintains Neutral
Citigroup reiterates its Neutral rating on BB&T (NYSE: BBT) and raises its PT to $29, up $4, to reflect a full valuation and possible headwinds offsetting good quarter results.
Citigroup says, "BBT reported 4Q results that beat our estimate and consensus, with core PTPP above our estimate helped by better than expected NII as reinvestment in securities (EOP securities up 11% after a 17% increase last quarter) led to higher than expected avg earning assets and securities yields held up better than our expectation (though duration is up to 3.3 vs. 2.7 last quarter, putting it now more in line with peers). However, mgmt did give guidance for 1Q12 NIM in the 3.85-3.95% range (vs. 4.02% in 4Q11 and prior guidance for 3.85-3.95% for the year 2012), with headwinds from covered loan runoff and the low interest rate environment."
BBT closed at $27.49 a share on Friday.
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