Zacks Investment Research downgraded shares of CIT Group Inc. (CIT) from OUTPERFORM to NEUTRAL on March 14, 2014, with a target price of $51.00.
We have downgraded our recommendation on CIT Group to Neutral reflecting lower-than-expected fourth quarter earnings. Earnings missed the Zacks Consensus Estimate owing to a tax agreement settlement charge. Additionally, the results suffered due to a fall in non-interest income and higher operating expenses. Nevertheless, a rise in net interest revenue and strong capital ratios were the tailwinds. We expect the company's liability restructuring initiatives and access to low-cost debts to continue driving growth. Further, given its strong balance sheet position, capital deployment activities are expected to be impressive. However, sluggish growth in the industries where CIT Group provides finance, together with stringent regulations could dent the company's financial performance in the near term.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on CIT Group Inc. (CIT),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment