Analyst Ebrahim Poonawala of Bank of America Securities reiterated a Buy rating on Truist Financial, with a price target of $50.00.
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Ebrahim Poonawala has given his Buy rating due to a combination of factors, including Truist Financial’s strong financial performance and strategic initiatives. The company reported third-quarter core earnings per share that exceeded expectations, driven by higher-than-anticipated fee income and lower credit costs. This positive performance is expected to continue, with management providing guidance for sequential net interest income growth and stable expenses, contributing to operating leverage.
Additionally, management’s target of a 15% return on tangible common equity by fiscal year 2027, which surpasses previous forecasts, suggests potential for positive earnings revisions. The stock’s current valuation, combined with a high dividend yield, presents an attractive risk/reward profile. Furthermore, the company’s strategic focus on leveraging its scale and market positioning, without engaging in large mergers and acquisitions, enhances investor confidence in its future growth trajectory.
According to TipRanks, Poonawala is a 5-star analyst with an average return of 12.9% and a 67.52% success rate. Poonawala covers the Financial sector, focusing on stocks such as Truist Financial, Citigroup, and Fifth Third Bancorp.
In another report released on October 7, Raymond James also maintained a Buy rating on the stock with a $50.00 price target.