Market Overview

Morgan Stanley Sees Guidance on SunTrust Banks as Conservative

Related STI
The 11 Best Banks for Life's Biggest Firsts
State Street (STT) Beats Q2 Earnings on Higher Fee Income
SunTrust In $968M Mortgage Settlement (Fox Business)

In a report published Thursday, Morgan Stanley analyst Betsy L. Graseck reiterated an Equal-Weight rating and $40.00 price target on SunTrust Banks (NYSE: STI).

In the report, Morgan Stanley noted, “STI guided to swap income of $102mn in 2015, lower than our prior estimate of $279. STI's guidance implies a 72% y/y decline in swap income in 2015 vs. our prior estimate for a 24% decline. This decline is largely due to swaps rolling off late 2014 / early 2015. STI's guidance is conservative, in that this guidance assumes short-term rates rise early in 2015, vs. our expectations for a rise in late 2015. As a result, we bake in marginally higher 2015 swap income of $120mn (vs. STI's $102mn guidance). We also bake in some additional expense management as STI continues to tackle expenses to reach its long-term sub-60% tangible efficiency ratio target. Overall, we take 2015 EPS down from $3.42 to $3.24 as a result of this announcement.”

SunTrust Banks closed on Wednesday at $37.13.

Latest Ratings for STI

DateFirmActionFromTo
Sep 2014JP MorganMaintainsOverweight
Jul 2014CitigroupMaintainsNeutral
Jul 2014Evercore PartnersDowngradesOverweightEqual-weight

View More Analyst Ratings for STI
View the Latest Analyst Ratings

Posted-In: Betsy L. Graseck Morgan StanleyAnalyst Color Reiteration Analyst Ratings

 

Related Articles (STI)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters