First Citizens initiated with a Buy at TD Cowen

TD Cowen initiated coverage of First Citizens (FCNCA) with a Buy rating and $2,400 price target The firm launched coverage of the U.S. large cap banks with a “very bullish outlook.” With large cap banks trading at the lowest relative valuation in “decades,” TD sees the group as being at least 30% undervalued, the analyst tells investors in a research note. The firm sees the “strongest decade ahead” for earnings growth, improved returns and reduced risk as banks “start a new chapter and enter an optimization age.” TD sees a recession as a potential positive valuation catalyst and believes the large banks are poised to lead other sectors as early implementers of artificial intelligence. The firm’s top picks are Fifth Third (FITB), U.S. Bancorp (USB), Regions Financial (RF), Citizens Financial (CFG), and PNC Financial (PNC).