SunTrust Bank Gets Rating Downgrade: Barron’s (STI)

SunTrust Bank

has been downgraded by FBR Capital. The bank’s rating has been slashed from “outperformer” to “market performer." Its price target has also been lowered to $27 from $34. The company has been downgraded to reflect its relative position in the banking sector. Barron’s has reported FBR Capital as stating that SunTrust Bank has a high risk/high reward ratio. The bank has reported a GAAP loss of 11 cents per share in its latest quarterly report. Its net interest margin is up on quarter over quarter to 3.33%. Its non performing assets declined 10% quarter over quarter. SunTrust Bank’s (

) average loans declined 1.24% quarter over quarter. FBR Capital has revised its 2010 EPS estimates to ($1.45) from ($1.35). For year 2011, the new EPS estimate is at $0.80, down from $1.50. The new price target of $28 is 1.2 times estimated second-quarter 2011 TBV of $22.72.