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Investing.com - Truist Securities raised its price target on Fifth Third Bancorp (NASDAQ:FITB) to $48.00 from $44.00 on Monday, while maintaining a Buy rating on the regional banking stock. The bank, currently valued at $28.8 billion, trades at a P/E ratio of 13.31 and has shown resilience with a 51-year track record of maintaining dividend payments.
The price target increase represents an 9% upward revision from Truist’s previous valuation of the Cincinnati-based bank. Truist cited a better net interest income outlook and slightly improved charge-offs based on the company’s latest guidance. According to InvestingPro analysis, the stock appears undervalued relative to its Fair Value estimate.
Truist raised its 2025 earnings per share estimate by 3% to $3.60 while maintaining its 2026 earnings estimate at $4.15. The firm indicated its forecasts align with Fifth Third’s own third-quarter and full-year 2025 guidance on loans, net interest income, fees, expenses, and charge-offs.
The new $48 price target is based on an 11.5x multiple applied to Truist’s maintained 2026 earnings estimate of $4.15 per share.
Fifth Third Bancorp operates approximately 1,100 full-service banking centers across the Midwest and Southeast regions of the United States.
In other recent news, Fifth Third Bancorp reported strong financial results for the second quarter of 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $0.88, slightly above the projected $0.87, and reported revenues of $2.25 billion, exceeding the anticipated $2.22 billion. Net interest income (NII) saw a 7% year-over-year increase, and the company plans to continue its expansion by opening 40 additional branches in the Southeast by the end of the year. Credit quality improved as non-performing loans declined after three consecutive quarters of increases. DA Davidson maintained its Buy rating on Fifth Third Bancorp, with a price target of $47, citing the bank’s strong first-half performance and expense reduction strategies. The firm noted that Fifth Third is on track to achieve record net interest income, even without further loan growth or interest rate cuts from the Federal Reserve. Despite these positive developments, the company’s management has indicated that loan growth may moderate in the latter half of 2025, with tempered expectations for full-year fee income growth.
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