UPDATE 1-Twelve U.S. banks' price targets cut by Bernstein

miércoles 11 de junio de 2008 18:03 CEST
 

 (Recasts; adds details)
 June 11 (Reuters) - Analysts at Sanford C. Bernstein & Co
cut their price targets on a dozen large and mid-sized U.S.
banking companies, saying mounting loan losses could result in
the highest level of charge-offs since 1991.
 In a note dated June 10, the brokerage lowered its price
targets on lenders including U.S. Bancorp, SunTrust Banks and
Regions Financial.
 Bernstein said rising unemployment is triggering an
increase in consumer loan losses, and that commercial loans are
suffering from "significant weakening."
 It also increased its forecast for the rate of full-year
net charge-offs to 1.33 percentage points from 1.23 percentage
points, compared with 0.61 percentage points in 2007. It said
the rate in 2009 may be 1.57 percentage points, up from its
prior forecast of 1.06.
 The brokerage said mortgage and home equity losses will be
several times higher than at any time over the last 15 years.
Construction charge-offs will largely be confined to
residential building, unlike in the 1992 trough, when
residential and commercial construction collapsed, Bernstein
added.
 The following table lists the price target changes:
 COMPANY                   SYMBOL        RATING         PRICE
TARGET
                                                     New   
 Old
 BB&T Corp                (BBT.N: Cotización)    Market-perform     $31   
 $39
 Comerica Inc             (CMA.N: Cotización)    Market-perform     $34   
 $42
 Fifth Third Bancorp     (FITB.O: Cotización)    Market-perform     $19   
 $25
 KeyCorp                  (KEY.N: Cotización)    Market-perform     $17   
 $24
 Marshall & Ilsley Corp    MI.N    Outperform         $27   
 $31
 M&T Bank Corp            (MTB.N: Cotización)    Market-perform     $95   
 $109
 PNC Financial Services   (PNC.N: Cotización)    Market-perform     $73   
 $83
 Regions Financial         (RF.N: Cotización)    Market-perform     $19   
 $22
 Synovus Financial        (SNV.N: Cotización)    Outperform         $13   
 $15.25
 SunTrust Banks           (STI.N: Cotización)    Market-perform     $47   
 $58
 U.S. Bancorp             (USB.N: Cotización)    Outperform         $40   
 $44
 Capital One Financial    (COF.N: Cotización)    Outperform         $77   
 $80
 Shares of these banks were trading down between 2 percent
and 6 percent in midday trade Wednesday.
 Bernstein said the stocks have sold off dramatically but
investors should remain cautious and focus on well-capitalized
names.
 (Reporting by Dilipp S. Nag in Bangalore; Editing by Himani
Sarkar)