Sell-side coverage starts on Santander Consumer USA

The quiet period for underwriters over, Deutsche Bank initiates coverage on Santander Consumer USA (SC) with a Buy and $30 price target. "[It] represents a unique growth story in US auto lending, which we view as an attractive asset class through the cycle," says analyst David Ho, who believes the transformational deal with Chrysler will drive earnings power higher.

Goldman's Eric Beardsley notes charge-offs are at cyclical lows and earnings growth could be limited going forward. Combine this with a stock trading at 3x book value and 12x his core 2014 EPS estimate, and it makes the shares a Hold with $25 price target.

Also chiming in with Buy ratings are BMO Capital and Wells Fargo.

Stating at Hold are BofA, and RBC.

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