Barclays Highlights Key Factors To Watch For BB&T Corporation

Barclays lowered its 2Q16 EPS estimate for BB&T Corporation BBT to $0.64 from $0.68 on a lower GAAP net interest margin. The 2016 EPS estimate now stands at $2.85, compared to $2.89 prior.

"We expect sizable fee revenue growth in 2Q16 (9–11 percent) which we think it should achieve given the low base in 1Q16, seasonal strength in mortgage, a recovery in capital markets fees and its insurance purchase," said Barclays.

Related Link: Barclays Bank Blitz: Analysts Cut Earnings Estimates For 15 Financial Stocks

Highlights Ahead

The analysts highlighted major factors worth watching, such as:

1. Focus Shifts: Shifting away from deal driven growth as management pausing deal activity and now looking to grow organically and deploy capital via buybacks
2. Deal Integration: Last two of the announced deals closed in 2Q16
3. Energy: Looking for results of spring borrowing base redetermination period
4. Efficiency target: With rates remaining low, reaching efficiency target getting tougher

Barclays currently has an Equal-Weight rating on BB&T with a $40 price target.