Fifth Third May Be Wrapping Shareholder Present: Analyst
Konrad said that KBW viewed Fifth Third's Basel III disclosure "positively as we believe some investors feared that FITB's tier 1 common ratio would decline to the 8.5% range similar to a few of its peers." The analyst also said that Fifth Third should hear back from the Fed on its revised capital plan covering dividends and share buybacks through March 2013 "no later than August 22nd," and that he expects the plan "to be similar to the one that had been previously submitted with minor adjustments in regard to the timing of the capital actions."
Fifth Third's shares closed at $13.77 Wednesday, returning 14% year-to-date, following an 11% decline during 2011.
The shares trade for 1.2 times their reported June 30 tangible book value of $11.89, and for nine times the consensus 2013 earnings estimate of $1.54 a share. The consensus 2012 EPS estimate is also $1.58.
Based on a quarterly payout of eight cents, the shares have a dividend yield of 2.32%.
Konrad rates Fifth Third "Outperform," with a price target of $16, saying "we still believe the stock offers a compelling story at these levels as it offers strong profitability metrics with a
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