UPDATE: ISI Group Upgrades SunTrust Banks to Hold on NIM Stability

ISI Group raised its rating on SunTrust Banks

from Sell to Hold with a reiterated price target at $23. ISI Group said, "We are upgrading STI to Hold from Sell because we no longer see significant downside risk to the stock price. While our 2013 and 2014 EPS estimates of $2.25 and $2.80 are below consensus levels of ~$2.60 and ~$3.05, we now think the stock is trading at fair value, even based on our below consensus EPS estimates. For example, our $23 price target (which is about equal to STI's current price) is based on 11x our 2013E EPS and 0.8x our year-end 2012 TBV (based on our expectation of an 8% ROTCE in 2013)." STI closed at $23.41 on Thursday.