I can usually manage to find the cloud for every silver lining, but I'm pleased to see BB&T's (NYSE:BBT) shares up about 16% from the last time I wrote on this North Carolina-based super-regional bank. Loan growth is still so-so, and the market backdrop (lower rates for longer) isn't so conducive to management's earlier margin targets, but credit quality remains pretty good, and BB&T has the opportunity to generate revenue and cost synergies from significant M&A that most of its peers don't.
My valuation hasn't changed all that much for these shares. I believe the company's acquisition spree boosts its long-term earnings growth potential above 10% (non-organic, clearly) and that a $41 fair value is reasonable today. That said, it's harder for me to identify the shiny/sparkly bits that would captivate the Street's attention in the short term, so this looks more like a solid hold than a compelling buy to me.
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BB&T Has A Lot To Digest While The Market Crawls Along