UPDATE: Deutsche Bank Raises PT on BankUnited Ahead of 3Q EPS Report

In a report published Wednesday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on BankUnited BKU, and raised the price target from $29.00 to $31.00. In the report, Deutsche Bank noted, “We expect BKU to report 3Q EPS of $0.46, in line w/cons & vs. 2Q EPS of $0.52. The lower EPS vs. 2Q primarily reflects an expected increase in expenses given higher personnel & occupancy costs as BKU continues to build-out in NYC & Florida, as well as costs related to regulatory/stress testing. Revenue trends should be modestly positive reflecting flat/higher net II (reflecting cont'd growth in new loans) & a modest increase in noninterest income. Lastly, provision expense should tick higher q/q to a more normal level (vs. 2Q's 31bps of avg loans) given $3m of net recoveries on legacy loans last qtr. Hold.” BankUnited closed on Tuesday at $31.25.