Analyst Ebrahim Poonawala from Bank of America Securities reiterated a Buy rating on Truist Financial (TFC – Research Report) and keeping the price target at $46.00.
Ebrahim Poonawala has given his Buy rating due to a combination of factors that highlight Truist Financial’s strategic positioning and potential for growth. The management’s approach to de-risking future guidance by adopting a more cautious outlook on investment banking activities is seen as a prudent move. This strategy, coupled with efforts to manage expenses and accelerate capital returns, provides a certain level of earnings per share (EPS) defensibility, despite potential downside risks from an economic slowdown.
Moreover, the stock is considered attractively valued, trading at 1.1 times the year-end 2025 tangible book value and 9 times the 2025 price-to-earnings ratio, while offering a 5.8% dividend yield. These factors make it appealing for investors seeking exposure to regional bank stocks. Additionally, the company’s focus on digital capabilities and talent acquisition in high-growth markets is expected to enhance efficiencies and spur organic growth, further supporting the Buy rating.