UPDATE: Morgan Stanley Raises PT to $35 on BB&T Corporation
Morgan Stanley increases its price target from $33 to $35 on Overweight-rated BB&T Corporation (NYSE: BBT) as stronger mortgage banking and better expense management yield EPS upside.
Morgan Stanley says, "Strong 1Q12 mortgage banking revenues and management commentary that purchase originations picked up well in the latter half of the quarter (indicating that volumes are not likely to drop substantially due to lower refi activity) imply 2012 mortgage revenues likely higher than our previous estimates. Management's actions to aggressively revalue and sell off problem assets in 2011 delivered results, as foreclosure expenses declined -27% q/q. Our $35 PT implies 11.2x 2013e EPS and 1.2x 2013e P/B on ROE of 11.4%".
BBT closed at $31.10 on Thursday.
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