Truist Financial downgraded to Neutral on valuation at Baird

Baird downgraded Truist Financial (TFC) to Neutral from Outperform with an unchanged price target of $55. The firm cites valuation for the downgrade with the shares up 17% off the March lows. Baird sees other banks with better pre-provision net revenue growth trajectories and earnings growth potential. Truist “has one of the most attractive franchises in banking but feel like a sale is unlikely in the near term,” the analyst tells investors in a research note. Baird sees more attractive bank stocks following the recent rally in Truist shares.