Oppenheimer Sticks to Their Buy Rating for CIT Group

By Jason Carr

Oppenheimer analyst Chris Kotowski reiterated a Buy rating on CIT Group (NYSE: CIT) today and set a price target of $54. The company’s shares closed yesterday at $44.89, close to its 52-week high of $47.67.

Kotowski said:

“While CIT’s stock has risen ~22% since it announced the sale of its commercial aircraft business last October 6 (in line with the BKX and vs. ~13% for the S&P 500), we still think that it is one of the most compelling values in the banking sector. The stock arguably should never have been as cheap as it was last October (then ~70% of TBV), and to us, it remains way too cheap at ~TBV.”

According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 8.6% and a 65.7% success rate. Kotowski covers the Financial sector, focusing on stocks such as Apollo Global Management LLC, Fidus Investment Corporation, and Solar Senior Capital Ltd.

CIT Group has an analyst consensus of Moderate Buy, with a price target consensus of $46.57.

Based on CIT Group’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $791 million and quarterly net profit of $167 million. In comparison, last year the company earned revenue of $1.17 billion and had a net profit of $147 million.

Based on the recent corporate insider activity of 79 insiders, corporate insider sentiment is negative on the stock. Last month, Ellen Alemany, the Vice Chairman of CIT sold 23,444 shares for a total of $983,945.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

CIT Group, Inc. is a financial holding company, which provides financing, leasing and advisory services. It operates through the following business segments: Commercial Banking, Consumer Banking and Non-Strategic Portfolios. The Commercial Banking segment consists of four divisions, commercial finance, rail, real estate finance and business capital. It provides a range of lending, leasing and deposit products, as well as ancillary products and services, including factoring, cash management and advisory services, primarily to small and medium- sized companies, as well as to the rail industry. The Consumer Banking segment includes retail Banking, consumer lending, and SBA lending, which are grouped together for purposes of discussion as other consumer banking and legacy consumer mortgages. The Non-Strategic Portfolios segment consists of businesses and portfolios that they no longer consider strategic. These portfolios include equipment financing, secured lending and leasing and advisory services to small and middle-market businesses. The company was founded by Henry Ittelson in 1908 and is headquartered in New York, NY.