Goldman Sachs reported on Friday that they have upgraded financial services company, SunTrust Banks, Inc.(STI) to a “Buy.”

The firm has increased their rating for STI from “Neutral” to a “Buy,” and has increased their price target from $29 to $33. This price target suggests a 12% increase from the stock’s current price of $28.93.

An analyst from the firm noted, “1) the continued rebound in Southeast housing driving further expense leverage and efficiency improvements to the low 60%’s by 2014, (2) upside to mortgage expectations given significant HARP volumes, (3) further loan growth opportunities from a pickup in CRE (and potentially HE/mtg post-QM), and (4) the potential for an upside surprise on capital returns given its significantly de-risked B/S and earnings profile (NPL sale, putback clarity).”

SunTrust Banks shares were up 22 cents, or 0.77% during premarket trading Friday. The stock has increased 61% in the past year.

The Bottom Line
Shares of SunTrust Banks (STI) have a .70% dividend yield, based on last night’s closing stock price of $28.63. The stock has technical support in the $24-$26 price area. If the shares can firm up, we see overhead resistance around the $30-$31 price levels.

SunTrust Banks, Inc.(STI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.