SunTrust Banks downgraded to "market perform"

07/20/06 - Ryan, Beck & Co

NEW YORK, July 20 (newratings.com) - Analyst Anthony R Davis of Ryan Beck & Co downgrades SunTrust Banks (STI) from "outperform" to "market perform," while reducing his estimates for the company. The target price is set to $82.

In a research note published this morning, the analyst mentions that the company has reported its 2Q06 diluted EPS ahead of expectations. SunTrust Banks’ margins declined sequentially by 12bps partly due to deposit mix shifts toward CD’s, the analyst says. The company’s non-performing assets have risen by 10% since March 31, Ryan Beck & Co adds. The EPS estimates for 2006 and 2007 have been reduced from $6.00 to $5.98 and from $6.50 to $6.46, respectively.