Morgan Stanley upgraded Truist Financial (TFC) to Overweight from Equal Weight with a price target of $69, up from $56. The firm estimates the bank has $14.6B of excess capital versus regulatory minimums, or 22% of its market cap, which is the highest in Morgan Stanley’s coverage. The analyst upped Truist’s loan growth forecasts to 4.7% and 5% in 2026 and 2027, respectively, and expects the bank’s buybacks to increase to a $5B annual pace in 2027and 2028, well ahead of consensus expectations. In addition, given the lower valuation of the stock relative to peers, Truist can deploy incremental capital toward buybacks with a faster earn-back, the analyst tells investors in a research note.
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