Dick Bove Compiles List of 16 Bank Takeover Targets (COF, STI, ZION)

Well-known Rochdale Securities analyst Dick Bove told CNBC today that a number of banks are prime takeover targets, as they remain undervalued.

According to a CNBC report, "Bove has been pushing the M&A theme on belief that investors aren't convinced about bank earnings and are keeping share prices too low."

Bove released a list of 16 banks he believes are positioned to be acquired.

"The increase in reported earnings is pushing the book value of the individual banking companies higher. The lack of enthusiasm for the source of the gain is pushing stocks lower," Bove wrote in a recent note to clients. "The net results is that the stocks now sell at significant discounts to book value and are clear acquisition targets."

"If Bank A buys Bank B at a discount to its stated book value, the acquisition is immediately accretive. The acquisition strategy becomes more compelling if both banks need acquisitions to grow core earnings. Bottom line there is growing value in these companies that will ultimately be recognized by the market."

Below is the list:

Webster Financial (NYSE: WBS)
Susquehanna (NASDAQ: SUSQ)
Wilmington Trust (NYSE: WL)
Capital One (NYSE: COF)

First Horizon (NYSE: FHN)
SunTrust Banks (NYSE: STI)
Regions Financial (NYSE: RF)
KeyCorp (NYSE: KEY)

Fifth Third (NASDAQ: FITB)
MB Financial (NASDAQ: MBFI)
Citizens Republic (NASDAQ: CRBC)
Marshall & Ilsley (NYSE: MI)

BancorpSouth (NYSE: BXS)
Whitney Holding (NASDAQ: WTNY)
Intl. Bancshares (NASDAQ: IBOC)
Zions (NASDAQ: ZION)