Bernstein Upgrades SunTrust, Downgrades Fifth Third

Bernstein Research analyst Kevin St. Pierre urges investors in mid-cap banks to “stay nimble” in a note today, upgrading SunTrust Banks (STI) to Outperform and downgrading Fifth Third Bancorp (FITB) to Market Perform.

“We believe the underperformance of STI around their mortgage put-back exposure has opened a window of opportunity for investors to add a profitable, TARP-free bank trading far below tangible book value,” St. Pierre writes.

Fifth Third, meanwhile, has risen too much in recent months to be worth an investment, St. Pierre argues. “[W]e see more compelling opportunities within our coverage.”