UPDATE: Jefferies Raising Price Target On M&T Bank Corp (MTB)

Jefferies & Co. is raising its price target on shares of M&T Bank Corp MTB to $98 from $95, and it has a Hold rating on shares. In a note to investors, Jefferies writes, "MTB posted a solid quarter, showing y/y pre-provision growth in an otherwise tough revenue environment. We raise '11, '12, and '13 estimates to $6.30 (from $6.00), $7.10 (from $6.90), and $8.20 (from $7.90), respectively, on lower TARP-related issuance assumptions and better revenue trends. Our price target increases to $98 from $95 to reflect our higher estimates. Raising estimates on lower TARP raise assumptions, better revenue. Key drivers to our model include: 1) a lower TARP-related capital raise, 2) a higher mortgage banking run-rate, and 3) better "other income." Modest offsets include: 1) a lower NIM post the Wilmington Trust (WL, $4.45, NC) merger (we assume an 8bp hit), 2) a smaller balance sheet (securities sales had a $484mm impact), and 3) a higher starting point for expenses." Shares of MTB gained $1.86 yesterday to close at $87.21, a gain of 2.2%.