Gold prices steady amid Fed rate cut hopes; Trump-Putin talks awaited
Investing.com - Raymond (NSE:RYMD) James upgraded Truist Financial (NYSE:TFC) from Market Perform to Outperform on Tuesday, setting a price target of $50.00. The bank, currently valued at $59.1 billion by market cap, trades near $45.16 and has maintained dividend payments for an impressive 53 consecutive years.
The upgrade reflects Truist’s positive tone at a recent investor conference where the bank expressed confidence in its low-single-digit loan growth outlook and noted improved activity in its investment banking division following earlier revisions to its 2025 outlook. According to InvestingPro data, analysts expect sales growth this year, with the company’s financial health score rated as "FAIR."
Raymond James highlighted potential tailwinds from the current deregulatory environment, which could lead to a faster-than-expected decline in Truist’s capital levels and drive progress toward its mid-teens ROTCE (Return on Tangible Common Equity) target.
The firm also cited Truist’s attractive valuation relative to historical averages and noted the bank’s year-to-date underperformance compared to peers and the KBW Bank Index (BKX), with TFC shares up 6.6% versus 13.0% for the BKX and peer group average.
Raymond James believes Truist presents a positive risk-reward dynamic and could benefit from a potential rotation from mega-banks and investment banks (which have outperformed this year) into regional banks that have largely underperformed. The stock currently offers a 4.6% dividend yield and trades at 1.01 times book value.
In other recent news, Truist Financial Corporation announced the Federal Reserve’s preliminary stress capital buffer requirement at 2.5% for the period starting October 1, 2025. This, combined with the Basel III Common Equity Tier 1 capital ratio of 4.5%, sets a minimum CET1 ratio requirement of 7.0%. As of March 31, 2025, Truist reported a CET1 ratio of 11.3%, comfortably exceeding the requirement. Citi upgraded Truist Financial to a "buy" rating, citing an expected improvement in the bank’s return on tangible common equity (ROTCE) to approximately 13% by 2026. Keefe, Bruyette & Woods reiterated an "Outperform" rating, highlighting Truist’s favorable financial outlook and potential benefits from repricing assets and share buybacks. In corporate governance, Truist appointed Jonathan Pruzan to its board of directors, bringing extensive financial services experience. At its 2025 Annual Meeting of Shareholders, Truist’s executive compensation was approved, and PricewaterhouseCoopers LLP was reappointed as the corporation’s independent auditor. These developments reflect Truist’s ongoing strategic and financial initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.