Seeking Alpha

Jefferies raises BB&T, SunTrust, Regions, cuts M&T and Zions

|About: BB&T Corporation (BBT)|By:, SA News Editor

Jefferies upgrades BB&T (BBT -1.2%) and SunTrust (STI -1.1%), which plan to merge under the Truist Financial name, to buy from hold.

Also boosts Regions Financial (RF -2.8%) to buy from hold.

Downgrades M&T Bank (MTB -1.8%) and Zions Bancorp to hold from buy.

For 2020-'21, "banks face slowing EPS growth and ongoing sentiment hurdles," Jefferies analysts led by Ken Usdin write in a note.

Sees base case for a stable economy, but "trade talk could tip it either way."

Sees 2020 election weighing on P/Es and EPS estimates based on regulatory outlook.

"EPS revisions are biased down with more rate cuts likely," they write.

Top picks include Citigroup (C -2.9%), KeyCorp (KEY -2.3%), and Fifth Third Bancorp (FITB -2.8%).

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