Jefferies Downgrades SunTrust Banks to "Hold" on Revenue Growth Concerns (STI)

Jefferies Downgrades SunTrust Banks to “Hold” on Revenue Growth Concerns (STI)

RSS

On Friday, analysts at Jefferies & Co. downgraded financial services firm SunTrust Banks, Inc. (STI) due to revenue growth hurdles.

The analysts downgraded STI from “Buy” to “Hold” with a new price target of $30. This valuation suggests about a 4% upside to Thursday’s closing price of $28.79.

A Jefferies analyst commented, “We are downgrading STI to Hold (target to $30 from $32) on revenue trajectory concerns, notably in mortgage banking. STI has a large % of revs. from mortgage production (>10%) and also had a large positive delta in ’12 from related fee growth. With gain-on-sale margins declining, STI is more exposed than most to revenue revisions. EPS support from declining credit costs and leverage to housing improvement remain positives.”

SunTrust shares were inactive during pre-market trading on Friday. The stock is up about +31% over the past twelve months.

The Bottom Line
Shares of SunTrust (STI) have a dividend yield of 0.69% based on last night’s closing price of $28.79 and the company’s annualized dividend payout of 20 cents per share.

SunTrust Banks, Inc. (STI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Free Updates

Join over 100,000 investors who get the latest news from Dividend.com.

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today