Nucor earnings beat by $0.08, revenue fell short of estimates
On Tuesday, Stephens analyst increased the price target on Truist Financial (NYSE:TFC) shares to $57.00 from $54.00, while maintaining an Overweight rating on the stock. The $62.7 billion market cap bank has seen its shares surge over 8.5% in the past week, trading at $47.65.
McEvoy's adjustment followed a stronger-than-anticipated fourth-quarter earnings report from Truist last Friday, which also included a promising outlook for 2025 that surpassed market expectations. According to InvestingPro data, analysts expect both sales and net income growth this year.
Truist's share price reacted positively to the announcement, reflecting investor approval of the company's performance and future projections. McEvoy noted that the bank's growth momentum across various business lines and markets is expected to drive profitable growth and positive operating leverage throughout the year.
In terms of financial projections, the company's operating revenue and expenses are forecasted to grow by 3.0-3.5% and approximately 1.5%, respectively, in 2025. Moreover, the analyst highlighted that Truist's strong capital position is likely to sustain the current pace of share repurchases.
During the earnings call, management outlined several areas of opportunity that could contribute to the bank's success, including fee-based services like wealth management, payments, and investment banking. They also pointed to geographic expansion in states such as New Jersey, Pennsylvania, and Texas, as well as growth in premier banking and middle-market commercial lending.
The analyst's commentary suggested that 2025 could mark a turning point for Truist, as it moves away from being perceived as a bank burdened by legacy merger-of-equals (MOE) issues. McEvoy emphasized that disciplined expense management would be crucial for this shift in investor sentiment. The maintained Overweight rating and revised price target reflect a confidence in Truist's ability to execute its strategic initiatives and deliver value to shareholders.
InvestingPro analysis suggests the stock is currently undervalued, with additional insights and a comprehensive Pro Research Report available for subscribers looking to dive deeper into Truist's financial health and growth prospects.
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