Citigroup (NYSE: C) analysts commented on several south-eastern regional banks including BB&T Capital (NYSE: BBT), SunTrust (NYSE: STI) and Synovus Financial (NYSE: SNV)
Citigroup reiterated buy recommendations on BB&T and SunTrust and upgraded Synovus Finanical to “Buy/High Risk” on a recent capital raise.
Citigroup wrote, “Betting on Southeast Survivors — During the past year the Southeast, particularly Georgia and Florida, have seen their share of bank failures which has improved the competitive positions of surviving franchises. BBT is likely to emerge as a stronger franchise following the government-assisted acquisition of Colonial and market disruption created by sizable failures. SunTrust is continuing to work its way through the cycle at better than expected capital levels and is likely to be able to repay TARP without any meaningful dilution to existing shareholders. Should M&A history be replayed and activity increases, STI will be a focal point as one of the more attractive franchises post-cycle.”
