UPDATE: Credit Suisse Reiterates Outperform Rating, Raises PT on SunTrust Banks

In a report published Friday, Credit Suisse reiterated its Outperform rating on SunTrust Banks (NYSE: STI), and raised its price target from $27.00 to $32.00.

Credit Suisse noted, “Last week's announcement of strategic actions eliminated uncertainty regarding several key issues and increased our '13/'14 EPS, while leaving our LT EPS forecast unchanged. However, we now have greater confidence on some of the key EPS drivers including credit-related NIE reductions and mortgage repurchase expense. Following the announcement, STI's stock has outperformed peers by ~4%, driven by a significant reduction of the credit quality / mortgage repurchase overhang (the first leg of our OP thesis). We expect the next move / EPS revisions will result from improving NIE forecasts, driven by lower credit related NIE with recent mgmt. guidance appearing conservative and real estate price stabilization / improvement providing additional upside.”

SunTrust Banks closed on Thursday at $28.87.

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