UPDATE: Goldman Sachs Initiates Coverage on M&T Bank Corporation with Neutral Rating, $105 PT

In a report published Wednesday, Goldman Sachs Group initiated coverage on M&T Bank Corporation

with a Neutral rating and $105.00 price target. Goldman Sachs noted, “MTB has enhanced its franchise via M&A as its stock outperformed by 22% on average post its last 5 deals. That said, with two large deals the past 24 months we expect its focus to shift to integration and execution where (1) outsized NIM pressure relative to market expectations (33 bp ex. HCBK) are set to weigh on its ROA, while (2) normalization of its higher-than-peers leverage, which accounts for 40% of its excess return, could pressure its ROE. With the stock trading at 2.3X TBV and 12.5X 2014E relative to peers at 1.1X and 9.4X, respectively, valuation seems full.” M&T Bank Corporation closed on Tuesday at $101.23.