Ebrahim Poonawala, an analyst from Bank of America Securities, reiterated the Buy rating on M&T Bank (MTB – Research Report). The associated price target is $198.00.
Ebrahim Poonawala has given his Buy rating due to a combination of factors that highlight M&T Bank’s strong positioning despite recent challenges. The bank’s first-quarter earnings per share were slightly below expectations, but its balance sheet remains robust, with a capital ratio significantly above regulatory requirements. This financial strength positions M&T Bank well to handle a volatile macroeconomic environment.
Additionally, the stock’s valuation appears attractive, trading at a lower multiple compared to its projected earnings growth over the next few years. The bank’s management plans to resume share buybacks, which could further enhance shareholder value. Despite some downward revisions in earnings guidance, M&T Bank’s strategic actions to mitigate interest rate impacts and its potential for capital flexibility post-stress tests support the Buy recommendation.
In another report released yesterday, Truist Financial also maintained a Buy rating on the stock with a $200.00 price target.
MTB’s price has also changed moderately for the past six months – from $185.560 to $158.500, which is a -14.58% drop .