As previously reported, Stephens upgraded Fifth Third (FITB) to Overweight from Equal Weight with a price target of $52, up from $49. The acquisition of Comerica (CMA) is expected to be “conservatively accretive” to 2027 EPS by 9%, and, once closed, provides Fifth Third with the two new markets of Texas and California for its branch model, the analyst tells investors. Despite “checking off the right M&A boxes,” shares are down about 4%, notes the analyst, who is modeling “peer-leading” ROA and ROTCE of 1.53% and 20.5%, respectively, by Q4 of 2027.
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