Credit Suisse Downgrades BB&T Corp. to Underperform (BBT)

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Credit Suisse is out with a research report this morning, where it downgrades shares of BB&R Corp.
BBT
to Underperform, from Neutral; it has a $28.00 price target on the stock. The CS analysts said that higher interest rates have reduced BBT's unrealized bond gains, which could lower BBT's GAAP earnings power through lower bond sales. In order to cover dividend levels, BBT may have to slow its aggressive asset disposition strategy to pre-2Q10 levels, which will benefit charge-offs over the near term, but likely extend its recovery period. Additionally, the anaslyts added that they believe BBT's NIM will underperform peers over the next two years due to low asset sensitivity (high fixed rate loan mix and MBS contribution), and roll-off of Colonial acquisition benefits.
Posted In: Analyst ColorPrice TargetAnalyst RatingsCredit Suisse
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