In a report released on July 18, Ebrahim Poonawala from Bank of America Securities reiterated a Buy rating on Truist Financial, with a price target of $49.00.
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Ebrahim Poonawala has given his Buy rating due to a combination of factors, including the potential for Truist Financial to improve its growth and return outlook, which could drive upside relative to earnings per share (EPS) and return on tangible common equity (ROTCE) forecasts. Despite the stock’s recent underperformance compared to peers, the valuation remains attractive, with a price-to-earnings ratio of 10.3x for FY26 and a 4.7% dividend yield.
To achieve a re-rating, investors will need to see revenue-driven momentum in pre-provision net revenue (PPNR) growth, which would enhance operating leverage and instill confidence in reaching the 15% ROTCE target. The potential for margin improvement and capital flexibility could further boost profitability. Although the pace of share buybacks is expected to moderate, the capital payout ratio is projected to average 93% through the end of 2026, supporting the Buy rating.
According to TipRanks, Poonawala is a top 100 analyst with an average return of 14.0% and a 73.20% success rate. Poonawala covers the Financial sector, focusing on stocks such as JPMorgan Chase, Goldman Sachs Group, and Fifth Third Bancorp.
In another report released on July 18, Raymond James also maintained a Buy rating on the stock with a $48.00 price target.