Fifth Third price target raised to $52 from $48 at Truist

Truist raised the firm’s price target on Fifth Third (FITB) to $52 from $48 and keeps a Buy rating on the shares. The firm updated its 2025 and 2026 EPS by (1)% and 1% respectively to $3.57 and $4.20. The main driver behind the 2025 nudge down is the Q3 hit from the asset-backed warehouse loan fraud that will drive Q3 provisions higher, shared at a recent industry conference, partially offset by better fees and credit for the remainder of the year. The 2026 EPS adjustment up is mainly driven by a slightly higher NIB deposits and earning assets – and a resulting higher net interest margin – from the Federal Benefits Direct Express program that Fifth Third will help manage, as well as an updated curve.