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Tuesday, June 15, 2010

Dick "I play an analyst on tv" Bove upgrades Suntrust Bank

Dick "I play an analyst on tv" Bove upgraded Suntrust Bank today from Sell to Neutral.

SunTrust upgraded on better real estate markets
Associated Press

SunTrust Banks Inc. will benefit from a recovery in the housing and commercial real estate markets as well as from oil spill money, a Rochdale analyst said Tuesday as he upgraded the bank holding company.

THE OPINION: The housing market seems to have bottomed in the regions where SunTrust services loans, Rochdale analyst Richard X. Bove said. He expects that the company's loan losses from housing will peak soon. Additionally, commercial real estate values are stabilizing, so owner defaults are less likely, he said. Furthermore, some of the money paid to companies and households hurt by the oil spill in the Gulf of Mexico will be deposited into banks and will be used to pay off loans, Bove said.

Bove upgraded the shares to "Neutral" from "Sell." His price target is $25

Grandpa: Mr. Bove remains dazed, confused and consistently shows up late on every call. He downgraded Suntrust on 10/26/09 noting that the bank may not show a profit until 2011. The stock closed at $19.65 on the day of his downgrade.

The stock ended 2009 at $20.29 and printed a closing high of $30.44 on 5/3/2010. Yesterday, the stock closed at $25.69 and today Bove raises his rating back to neutral and a $25.00 price target. The stock closed today at $26.57. Nicely done Dick, see you on your next CNBC visit. The fact you have a job is amazing. The fact that anyone would consider trading based on your opinions is astonishing.

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