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%.