Nomura Starts Coverage on Banking Group: WFC, MTB, USB at Buy, STI, RF, FITB, HBAN, KEY at Neutral

Wednesday, May 14, 2014, Nomura Equity Research analyst Bill Carcache initiated coverage of nine banks. Carache assigned four Buy ratings, and five Neutral ratings. Carache initiated coverage on the following banks with a Buy rating:
  • Wells Fargo (NYSE: WFC) – $60 price target – If economic recovery muted and loan growth modest, expect outperformance coming from fee income and expense control, supplemented by capital return.
  • M&T Bank Corporation (NYSE: MTB) – $146 price target – Looking ahead, MTB is believed to receive regulatory approval to proceed with the acquisition of HCBK, along with meaningful operating efficiency improvements as they approach the end of 2014.
  • US Bancorp (NYSE: USB) – $51 price target – view USB's best-in-class operating efficiency, industry-leading fee income generation, and low levels of excess capital drive USB's 20% - plus returns as repeatable and sustainable.

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Carach initiated coverage on the following banks with a Neutral rating:
  • Suntrust Banks (NYSE: STI) – $41 price target – Despite improved credit and return profile following the Great Recession, view risk in owning shares as roughly in balance with the rewards.
  • Regions Financial (NYSE: RF) – $11 price target – Despite rallying shares as credit improved, funding costs have improved, and margins expanding, it is believed risk with owning RF shares are in balance with the rewards.
  • Fifth Third (NASDAQ: FITB) – $23 price target – Despite evidence of better risk controls and more disciplined underwriting is present, the risk associated with owning FITB shares is in line with the reward.
  • Huntington Bancshares (Nasdaq: HBAN) – $10 price target – Under new leadership of CEO Stephen Steinour, HBAN has experienced growth from the addition of thousands of new customers and a rebranding. Despite this positive direction, risks of owning shares are in balance with rewards.
  • Keycorp (NYSE: KEY) – $14 price target – New management has helped KEY regain its footing, and they have been enjoying is meaningful decreases in deposit funding costs, strong fee income generation, solid asset quality, and industry-leading capital return, but Carrach believes the risk with owning KEY shares are in line with the reward.
Posted In: Analyst ColorNewsPrice TargetInitiationAnalyst Ratings