Near-Term Uncertainty For BB&T Corporation

BB&T Corporation near term uncertainty is never a good thing. Oppenheimer is initiating coverage with a Perform Rating. In a research note, Oppenheimer writes, "We are initiating coverage of BB&T with a Perform rating. One of the underlying reasons behind our current view on BB&T is the expected "lumpiness" to credit trends over the near term related to the company's accelerated asset disposition strategy. The movement of $1B of nonperforming loans to held-for-sale status should result in higher credit costs in 3Q10 and additional expenses in the coming quarters once the loans are ultimately sold. While the valuation on BB&T has come down in-line with the stock price, we believe upside over the near-to-mid term is limited until investors have a better feel for the ultimate loss content in certain segments of the company's loan portfolio." MSDXP shares closed yesterday at $29.50