UPDATE: Jefferies Downgrades SunTrust Banks to Hold on Revenue Headwinds
Jefferies downgraded SunTrust Banks (NYSE: STI) from Buy to Hold and lowered the price target from $32.00 to $30.00.
Jefferies noted, "We are downgrading STI to Hold (target to $30 from $32) on revenue trajectory concerns, notably in mortgage banking. STI has a large % of revs. from mortgage production (>10%) and also had a large positive delta in '12 from related fee growth. With gain-on-sale margins declining, STI is more exposed than most to revenue revisions. EPS support from declining credit costs and leverage to housing improvement remain positives."
SunTrust Banks closed at $28.79 on Thursday.
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