Jefferies Reiterates Buy on Fifth Third Bancorp (FITB)

Jefferies is out with its report on Fifth Third Bancorp FITB reiterating Buy. In a note to clients, Jefferies writes, "Pre-tax, pre-provision was inline for 4Q but looks better than we expected going forward. Benefits are: 1) improved loan growth, even after the $842mm reduction from the JV-related credit; 2) better than-expected NIM; 3) good fee generation. Expenses were higher too, but should reset lower in 1Q. Estimates move higher for 2011, 2012, 2013 full years to $1.10, $1.55, $1.70, resp. Raise of $1.7B is 6% additive to tang. book. Assuming a $14 pricing, pro forma tang. book moves to $10.50 from $9.94 reported and implied multiple would be 1.3x. Further we expect tang. book togrowth at a solid clip in 2011 (9%) and 2012 (10%), providing upside looking forward." Jefferies maintains a $17 PT on FITB. FITB is trading pre-market at $14.36, down 1.71% from yesterday's close.