10 Big Banks Stocks to Watch In the 'Kitchen Sink' Quarter (Update 3)
Based on a quarterly payout of 70 cents, the shares have a divided yield of 2.73%.
M&T in August announced a deal to acquire Hudson City Bancorp (HCBK) of Paramus, N.J., for $3.7 billion in cash and stock. Hudson City had $41.9 billion in total assets as of Sept. 30, with 135 branches in New York, New Jersey, and Fairfield County in Connecticut. The merger is expected to be completed during the second quarter.
Analysts expect M&T to report fourth-quarter earnings of $2.17 a share, matching the bank's third-quarter bottom line, but increasing from $1.04 a share in the fourth quarter of 2011, when the bank reported several extraordinary items, including a $79 impairment charge related to its 20% stake in Bayview Lending Group, and another impairment charge of $25 million in mortgage-backed securities.
KBW analyst Brian Klock on Dec. 13 upgraded M&T to an "Outperform" rating from "Market Perform," while raising his price target for the shares by two dollars to $111. Klock expects M&T to post fourth-quarter earnings of $2.15 a share, and estimates EPS of $8.45 in 2013, rising to $9.10 in 2014. The analyst said that "MTB is well positioned to offset NIM headwinds with expense controls, and we believe the HCBK merger will be very accretive and a catalyst for consensus estimates to move higher."
Interested in more on M&T Bank? See TheStreet Ratings' report card for this stock.
Shares of Comerica (CMA) of Dallas closed at $32.34 Monday, trading just below tangible book value, and for 12.3 times the consensus 2013 EPS estimate of $2.64. The consensus 2014 EPS estimate is $2.74.
The shares returned 20% during 2012, following a 38% decline in 2011.
Based on a quarterly payout of 15 cents, the shares have a dividend yield of 1.86%.
Comerica is scheduled to report its fourth-quarter results on Jan. 16, with the consensus among analysts being a profit of 65 cents, increasing from 61 cents in the third quarter, and 48 cents in the fourth quarter of 2011.