UPDATE: Morgan Stanley Reiterates Overweight Rating, Raises PT on SunTrust Banks
In a report published Friday, Morgan Stanley reiterated its Overweight rating on SunTrust Banks (NYSE: STI), and raised its price target from $29.00 to $33.00.
Morgan Stanley noted, “The $3b in loans that are moving to held for sale are primarily NPL and Delinquent. That is a significant 65% of NPL and Delinquents, suggesting the market for Resi in judicial states is far stronger than investors had been anticipating. Most other banks are suggesting that investors are not interested in judicial state NPLs as they sit in the courts for years. STI suggests its inventory may be better. Until proven otherwise at next week's industry conference, we expect the market will take STI's asset sale as a positive read across for banks in general, and particularly for Citi which has a skew to judicial states through its presence in NY, NJ, FLA.”
SunTrust Banks closed on Thursday at $26.68.
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