Sterne Agee Reiterates Buy, $43 Target on CIT Group

Sterne Agee maintains its Buy rating and $43 target price on CIT Group (NYSE: CIT) as the company announces $2 Billion redemption of 7% Series A notes.

Sterne Agee notes, "After the market closed yesterday, CIT announced it will redeem $2 billion of its outstanding Series A Second Lien 7% notes. Approximately $1.6 billion of 2015 and $400 million of 2016 notes will be paid off. Net of this most recent redemption, the company has $1.5 billion in 2016-As and $2.9 billion in 2017-As notes outstanding. The complete redemption of Series A notes, a 2012 event in our view, will result in its remaining long-term debt being classified as unsecured."

CIT closed at $36.03 per share on Thursday.