JP Morgan upgrades M&T Bancorp to 'overweight' on improving credit trends
** J.P. Morgan upgrades U.S. regional lender M&T Bancorp MTB.N to "overweight" from "neutral", citing improving credit trends
** Brokerage says it expects outsized credit fears and worries over declining net interest margins (NIM) to erode over the next few quarters as the U.S. Fed cuts benchmark rates
** Raises PT on MTB to $215 from $183, an upside of ~25% on the stock's last close
** "Once the company is able to demonstrate a stable NIM in the backdrop of reduced short-term rates ... we believe this will quickly set the stage for bottom-line EPS expectations to improve" - brokerage
** NIM - a key profitability metric that measures how much a bank earns as interest on loans and pays out on deposits - has contracted broadly across the industry YTD amid higher deposit costs and tepid loan demand
** J.P. Morgan adds there are multiple near-term catalysts for the stock and that MTB's growth profile is better than peer banks
** 11 of 23 brokerages rate the stock "buy" or higher, 11 "hold" and one "sell"; their median PT is $182 - LSEG
** As of last close, MTB up ~25% YTD vs a 18.4% gain in the benchmark S&P 500 .SPX
Reporting by Manya Saini in Bengaluru
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