Shares of National City Corp. rose Thursday after an analyst upgraded shares of the Cleveland-based banking company and said it has enough capital to weather the current credit crisis.
Sandler O'Neill & Partners LP analyst R. Scott Siefers upgraded the stock to "Buy" from "Hold" and said the company's capital cushion should support it in "virtually any credit scenario." In May, National City got a $7 billion capital infusion from equity investors.
Siefers said investors who build positions now will be well-rewarded, though it may take some time.
"It goes without saying that any bank stock investment in this market probably requires some patience and a strong stomach," Siefers wrote in a client note.
Siefers said the stock has declined to a point that "bears closer scrutiny" and thinks the company's capital affords it the flexibility to get through a very severe credit cycle without having to raise additional funds.
Shares of the company, which have dropped 73.6 percent so far this year, rose 67 cents, or 15.4 percent, to $5 in afternoon trading.
AP: Last Call: National City heads higher
Depositors can feel some relief, too.
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