- "While it is clear that Fifth Third (FITB -0.6%) faces challenges, they also bring to the table a number of positives that we wouldn't normally expect from a bank trading at a discount to the group," says UBS analyst David Eads, starting the stock with a Buy rating and $22 price target.
- He notes the bank had the lowest core efficiency ratio in his coverage universe last year (lower is better), and was second only to M&T in terms of ROTE. Further, FITB has been able to improve its efficiency ratio over the past two years even though revenue growth has been negative. "[It] makes us more confident in their ability to navigate this difficult environment."
- Meanwhile, KBW throws in the towel on its buy recommendation, downgrading to Market Perform.
- Stress tests results are due on Thursday afternoon, with the CCAR six days later.