Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why M&T Bank Corporation Shares Willy Fly Above $140

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of M&T Bank  (NYSE: MTB  ) rallied 1% today after Goldman Sachs upgraded the regional bank from neutral to buy.

So what: Along with the upgrade, analyst Ryan Nash raised his price target to $145 (from $128), representing about 20% worth of upside to yesterday's close. So while contrarian traders might be turned off by the stock's climb in recent months, Nash's call could reflect a sense on Wall Street that the bank's growth prospects still aren't fully baked into the valuation.

Now what: According to Goldman, M&T's risk/reward trade-off is rather attractive at this point. "We believe earnings accretion from HCBK will prove well above original guidance, driving upside to EPS (pro- forma we are 6% above consensus for 2015) and declining professional costs (BSA/AML) and an increased focus on efficiency will drive its ratio toward its 50-55% target," said Nash. "Longer-term, we see 12% upside to EPS from higher rates for the combined bank." Of course, with M&T shares flirting with their 52-week high and trading at a P/E premium to the industry, I'd hold out for a wider margin of safety before buying into that bullishness.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That’s beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor’s portfolio. To see our free report on these stocks, just click here now.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2953489, ~/Articles/ArticleHandler.aspx, 9/2/2015 9:06:24 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Brian Pacampara

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,058.35 -469.68 0.00%
S&P 500 1,913.85 -58.33 0.00%
NASD 4,636.11 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 4:03 PM
MTB $112.65 Down -5.59 +0.00%
M&T Bank Corp CAPS Rating: ****