On Friday, Wolfe Research adjusted its stance on Truist Financial (NYSE:TFC), elevating the stock's rating from Underperform to Peer Perform. The firm cited the stock's recent performance and its positioning for future growth as reasons for the change.
The research firm noted that Truist Financial shares have not kept pace with the broader market, underperforming the KBE (SPDR S&P Bank (NYSE:KBE) ETF) significantly over the past 2, 3, 5, and 10 years. However, this year has shown a turnaround, with Truist's shares climbing approximately 14%, outpacing the S&P 500's increase of around 12%.
Wolfe Research maintains its earnings per share (EPS) estimates for Truist Financial for the second half of 2024 and the full years of 2025 and 2026.
The upgrade to Peer Perform reflects the firm's assessment that Truist Financial is in a strong position to capitalize on the increasing business activities within its areas of high growth.
The analyst from Wolfe Research highlighted that their previous cautious stance on Truist Financial's stock is no longer necessary. This suggests a shift in perspective regarding the bank's operational capabilities and market opportunities.
Truist Financial's stock adjustment by Wolfe Research is based on the current financial performance and the anticipated benefits from the bank's strategic positioning. The change in rating is significant for investors tracking the performance and outlook of Truist Financial in the banking sector.
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