S&P Capital IQ Reiterates its BUY Rating on Fifth Third Bancorp

October 21 00:00 2011

NEW YORK, October 21 (RainbowNewsLine.com) – Analyst Erik Oja of S&P Capital IQ reiterates his BUY rating on the shares of Fifth Third Bancorp (NASDAQ: FITB), while raising his estimates for the company. The target price is set to $15.

Analyst Erik Oja, in a research note published yesterday mentions that the company reported its Q3 EPS of $ 0.40 ahead of the estimates, driven by lower than expected loan loss provisions and reserve releases. Although Fifth Third Bancorp has enough reserves to continue releasing at high rate, the company is likely to lower the reserves release levels in coming months, the analyst says.  The EPS estimates for 2011 and 2012 have been raised from $1.09 to $1.21 and from $ 1.27 to $1.35 respectively, considering the strong loan growth and net interest margin levels, the analyst adds.