CFRA Reiterates Hold Opinion On Shares Of Truist Financial Corporation

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by $7 to $37, 9.4x our 2025 EPS estimate, below TFC’s five-year forward P/E average of 10.8x, given modest growth expectations. We raise our 2024 EPS estimate by $0.07 to $3.57 and start 2025’s at $3.92. TFC posted adjusted Q4 EPS of $0.81 vs. $1.30 a year ago, $0.09 below consensus. TFC made strides toward improved execution this quarter with a 4.5% adjusted expense contraction and an improvement in the bank’s efficiency ratio (-300 bps to 58.8%). Additionally, capital pressures eased as a decline in long-term rates improved the bank’s AOCI by 19%. Credit quality came in mixed as net charge-offs rose, while nonperforming assets fell. Given weak client demand and reductions in indirect auto and mortgages, TFC saw its consumer and business loan balances each fall 2%. Despite an improving outlook, we maintain a Hold rating as TFC has struggled with earnings growth (our 2025 EPS estimate is in line with 2018 numbers and below 2019 results). Shares yield 5.8% vs. peers’ 4.5%.

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