Sterne Agee Reiterates Buy Rating On CIT Group

According to Sterne Agee, CIT Group CIT Buy rating is reiterated. Sterne Agee said that it is altering the format of our earnings estimates to reflect expected cost related to reduction in the company 7.00% notes (As & Cs). “We have always factored this into our book value estimates, but are now including it in our published GAAP estimates. Given this change, we are reducing the 2011 EPS estimate from $1.45 to $0.35, reducing the 2012 EPS estimate from $3.90 to $1.45, and initiating a 2013 EPS estimate of $2.95. Our ‘earnings potential estimate (fully optimized funding structure) remains at $5.00 per share. We are reiterating our BUY rating and $50 price target.” CIT Group closed yesterday at $42.80.