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Investing.com - Wells Fargo (NYSE:WFC) upgraded Synovus Financial (NYSE:SNV) from Equal Weight to Overweight on Thursday, raising its price target to $62.00 from $50.00. The bank, currently trading at $54.63 with a market cap of $7.6 billion, shows promising fundamentals according to InvestingPro data, with nine analysts recently revising earnings upward for the upcoming period.
The upgrade comes as Wells Fargo expects Synovus to benefit from multiple growth drivers, including fixed asset repricing, accelerating loan growth, hedge maturities, and expense control measures.
Wells Fargo noted that Synovus posted "among the strongest starts to 2025" in the first quarter and expects this momentum to continue throughout the year.
The firm anticipates a "beat-and-raise" second quarter for Synovus, reinforcing its positive outlook on the financial institution’s near-term performance.
As part of its Southeast banking sector analysis, Wells Fargo also recommended a pair trade, suggesting investors go long on Synovus while shorting First Horizon (NYSE:FHN), citing concerns about higher deposit costs at FHN potentially resulting in negative net interest margin and net interest income surprises.
In other recent news, Synovus Financial Corp. announced the declaration of quarterly dividends for both its common and preferred stock. Shareholders of the common stock will receive a dividend of $0.39 per share. In addition, dividends for the Series D and Series E preferred stocks have been set at $0.50594 and $0.52481 per share, respectively. Meanwhile, Jefferies initiated coverage on Synovus with a Hold rating and set a price target of $55, highlighting the bank’s significant market presence but expressing caution due to historical loan losses and below-average capital levels. DA Davidson adjusted its price target for Synovus to $60, maintaining a Buy rating and noting strong first-quarter earnings characterized by high net interest income and a well-managed net interest margin. Stephens revised its price target to $46, maintaining an Equal Weight rating, and pointed out that Synovus’ core pre-provision net revenue exceeded expectations despite a decline in fee income. BofA Securities raised its price target to $60, maintaining a Buy rating, after Synovus reported a first-quarter earnings per share that beat expectations, driven by lower provisioning expenses and an improved net interest margin. These developments reflect a range of analyst perspectives on Synovus’ financial performance and strategic position.
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