UPDATE: Nomura Group Upgrades CIT Group to Buy, Raises PT
In a report published Friday, Nomura Group upgraded its rating on CIT Group (NYSE: CIT) from Neutral to Buy, and raised its price target from $39.00 to $42.50.
Nomura Group noted, “We're upgrading CIT Group to Buy from Neutral to reflect our view that the risk/reward to owning shares (currently trading at a 17% discount to our 2013 TBVPS estimate and 6% discount to current TBVPS) is now favorable. Potential catalysts include: (1) Fed authorization to return a modest amount of capital to shareholders (CIT has ~$2.1bn in excess capital, representing ~29% of its market cap) and (2) the potential for an upside earnings surprise driven by greater-than-expected expense cuts. CIT is ‘under-earning' its long-term potential due to a still-expensive funding base. We would not be surprised to see CIT acquired by a large bank.”
CIT Group closed on Thursday at $36.35.
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