RPT-UPDATE 1-Bernstein cuts targets on Comerica, PNC, BB&T

viernes 18 de enero de 2008 16:40 CET
 

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 Jan 18 (Reuters) - Sanford C. Bernstein cut its price
target on Comerica Inc (CMA.N: Cotización) following the U.S. regional
bank's quarterly results and said with continued weak earnings
and an appetite for mid-to-high single digit loan growth, it
would be capital constrained over the foreseeable future.
 Higher levels of loss versus Bernstein's forecast of 56
basis points in 2008 could lead Comerica to cut dividend, the
brokerage added.
 The brokerage also cut its price target on PNC Financial
Services Group Inc (PNC.N: Cotización), and BB&T Corp (BBT.N: Cotización) following
their quarterly results.
 Fourth-quarter profit for PNC, Pennsylvania's largest bank
fell 53 percent, hurt by credit losses and write-downs for
commercial mortgages in its portfolio.
 BB&T, a large U.S. Southeast regional bank, reported a
higher net income for the fourth quarter but a decline in
operating profit as loan losses more than doubled.
 PNC, like CMA is capital-constrained in the near term and
should charge-offs be significantly worse than Bernstein's
estimated 58 basis points, PNC would be at risk of cutting
dividend, the brokerage said.
 Bernstein, which has a "market perform" rating on the three
stocks, made the following changes to price targets and 2008
share view: BANK              PRICE TARGET        
EARNINGS-PER-SHARE VIEW
            CURRENT     PRIOR       CURRENT           PRIOR
Comerica       $38         $48         $3.75             $4.40
PNC Financial  $62         $71         $5.25             $5.60
BB&T           $31         $33         $3.00             $3.05
 (Reporting by Nachiket Kelkar in Bangalore; Editing by Anupama
Dwivedi)