Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Raymond (NSE:RYMD) James has lowered its price target on Truist Financial (NYSE:TFC) to $48.00 from $50.00 while maintaining an Outperform rating on the stock. The $58 billion bank currently appears overvalued according to InvestingPro’s Fair Value model.
The price target reduction comes despite Truist Financial’s core earnings per share exceeding consensus expectations and the company essentially reiterating its full-year guidance. While currently not profitable over the last twelve months, InvestingPro data shows analysts expect the company to return to profitability this year, with projected EPS of $3.89.
Raymond James noted that TFC shares are underperforming, which it believes reflects market concerns around near-term net interest margin/net interest income and the expected increase in investment banking fees in the second half of 2025.
The firm now models adjusted revenue growth at the low end of Truist’s 1.5-2.5% target range to reflect the uncertain operating and economic environment, while acknowledging that progress on deregulation and improved loan growth outlook could lead to stronger results.
Raymond James continues to see a "modestly positive risk-reward skew" for Truist Financial, citing ongoing progress toward mid-teens return on tangible common equity, a modest improvement in near-term credit outlook, and projected positive operating leverage compared to the bank’s discounted valuation and year-to-date underperformance versus peers.
In other recent news, Truist Financial Corporation reported a robust second quarter for 2025, surpassing earnings expectations. The company achieved earnings per share of $1.19, significantly exceeding the anticipated $0.92, marking a surprise of 29.35%. Revenue also slightly outperformed projections, reaching $5.04 billion against a forecast of $5.02 billion. Truist’s performance was supported by digital innovations and loan growth, with digital channels accounting for 43% of new clients. The bank also experienced a 2% increase in loan balances and a 2.3% rise in net interest income. Truist Financial anticipates full-year revenue growth between 1.5% and 2.5%, with plans to repurchase approximately $500 million in shares during the third quarter. Additionally, the company received favorable results from the Federal Reserve’s annual stress test, indicating a strong capital position. Piper Sandler and Autonomous Research analysts participated in a recent earnings call to discuss Truist’s strategies and market conditions.
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