Market Overview

I think you’ll love what you hear,
what you’ll see and the opportunities
that will be set before you.
- Jon Najarian
GET TICKETS

UPDATE: Bank Of America Downgrades Santander Consumer Following Investor Day

Share:

In a report published Thursday, Bank of America analyst Kenneth Bruce downgraded the rating on Santander Consumer USA Holdings Inc (NYSE: SC) from Neutral to Underperform, and lowered the price target from $19.00 to $16.00.

In the report, Bank of America noted, “Following its investor day, we are downgrading Santander Consumer (SC) to Underperform from Neutral and lowering our Price Objective to $16 from $19. Our new P.O. is ~8x our new 2015 adj. diluted EPS estimate of $1.95. We came away from SC's investor day incrementally more bearish on the company's NT earnings outlook as we expect SC's migration to higher loss rates to weigh on the company's earnings and erode confidence in the stock. Loss rates are increasing due to a number of factors, including seasoning of 2013 vintages, Q4 seasonal factors and SC's mix-shift toward deeper subprime. Along with SC's conservative reserving methodology, we expect these factors to continue to drive provision levels higher and dampen EPS growth over the near-to-medium term.”

Santander Consumer closed on Wednesday at $18.63.

Latest Ratings for SC

DateFirmActionFromTo
May 2019DowngradesBuyNeutral
Apr 2019DowngradesOverweightNeutral
Apr 2019UpgradesUnderweightNeutral

View More Analyst Ratings for SC
View the Latest Analyst Ratings

Posted-In: Bank of America Kenneth BruceAnalyst Color Downgrades Analyst Ratings

 

Related Articles (SC)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
DWDPMaintains38.0
EQTUpgrades
DEMaintains158.0
CCIMaintains138.0
AMTMaintains201.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Stifel Nicolaus Downgrades Sapient To Hold

Morgan Stanley: Wearable Technology A Potential $1.6 Trillion Business