- SunTrust (NYSE:STI) reported an earnings beat on Friday, but the stock had a rough session as management expressed caution (CC transcript and slides) with regards to hitting net interest margin targets thanks to the rates "lower for longer" outlook.
- "As a result," said CFO Aleem Gillani, "we are expecting NIM to grind down a little bit in Q3 perhaps a little bit more in Q4."
- Noting the NIM pressure as well as possibly elevated expenses in H2, analyst Ryan Nash downgrades STI to Buy from Conviction Buy. The price target is cut to $44 from $46, and compares to Friday's close of $42.40.