UPDATE 1-RESEARCH ALERT-Punk Ziegel's Bove ups 5 finance stocks

martes 27 de noviembre de 2007 11:47 CET
 

 (Adds details, analyst's comments, background)
 Nov 27 (Reuters) - Punk Ziegel analyst Richard Bove
upgraded five stocks in the financial services industry,
including PNC Financial Services Group Inc (PNC.N: Cotización) and BB&T
Corp (BBT.N: Cotización), based primarily on valuation assumptions.
 Bove said both PNC Financial and BB&T have avoided most of
the pitfalls in the banking industry. PNC's earnings outlook
was better than most others in the sector, he added.
  BB&T's stock is falling in line with its industry and as
the financial crisis unwinds the bank should benefit from
reintermediation of loans to the banking industry, Bove said in
a note to clients.
 Bove upgraded Regions Financial Corp (RF.N: Cotización) saying despite
several issues like falling margins and a lowering of the
earnings estimate, its earnings will rise in 2008 and 2009.
"The stock has overshot the negatives on the down side. It is
simply too cheap to pass up," Bove said.
 On Washington Mutual Inc (WM.N: Cotización), Bove said he would not buy
the stock but no longer wanted to sell it either.
 Bove believes Keycorp (KEY.N: Cotización) is another stock that has
overshot the downside, and that the company's earnings in 2008
may only be slightly ahead but they will be "meaningfully"
higher in 2009.
 The following table shows the stocks that were upgraded:
 Company                               Rating
                            Old                  New
 PNC Financial         Market Perform               Buy
 BB&T Corp             Market Perform               Buy
 Regions Financial     Market Perform               Buy
 Washington Mutual               Sell    Market Perform
 KeyCorp                         Sell    Market Perform
 Regional banks have been suffering along with larger rivals
from the subprime mortgage market crisis with the KBW Bank
Index , which includes the above banks, closing down
about 5 percent at $88.12 Monday after touching a year low of
$88.02.
 (Reporting by Nivedita Gupta in Bangalore; Editing by Jarshad
Kakkrakandy)