Thursday, FBR Capital Markets upgraded Synovus Financial Corp. (SNV) shares to Market Perform from Underperform and increased its price target to $3 from $2.50. The brokerage narrowed its 2010 operating loss per share estimate to $1.13 from $1.25, while maintaining its 2011 loss estimate of $0.03.
Analyst Paul Miller Jr. upgraded the stock o Market Perform and raised his price target to $3.00 after the company's capital raise, which was upsized to $1 billion, a clear positive for SNV shares as it fills the company's capital hole and places Synovus solidly in the "survivor" category.
Synovus priced about $700 million in common equity at $2.75 per share, which the analyst believes is slightly more dilutive than investors expected, and issued about $300 million in tangible equity units, which will boost equity by about $230 million.
With a pro forma TCE ratio of about 8.2%, the analyst believes capital concerns are largely shelved for the time being, and he expects investors to shift focus to the level and timing of normalized earnings for Synovus. Given the dilution, the analyst's normalized EPS estimate declined to $0.20 to $0.30 per share.
The analyst believes shares are fairly valued at $3, which implies a multiple of 1.3x projected first quarter of 2011 TBV and 12x undiscounted normalized earnings. In the analyst's view, SNV shares likely will remain range bound until SNV can generate stronger earnings power, which could drive valuation higher. The analyst narrowed 2010 operating loss per share estimate and maintained his 2011 loss estimate to reflect the new share count.
Currently, SNV is up $0.01 or 0.47% and trading at $3.19.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.