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Piper Sandler maintains Neutral rating on Truist with no target change

EditorTanya Mishra
Published 03/09/2024, 14:50
TFC
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Piper Sandler has confirmed a Neutral rating on shares of Truist Financial (NYSE:NYSE:TFC), maintaining a $43.00 price target. The firm highlighted Truist's robust capital position, which provides the bank with more flexibility than some competitors. Truist is also recognized for its sensitivity to liabilities over time.

In their remarks, Piper Sandler pointed out that no significant changes in guidance are anticipated from Truist in its mid-quarter update. However, the firm showed interest in any new information regarding how interest rates might influence the bank's financial outlook and any developments in loan demand.

Despite Truist's stable position, the firm observed that investor interest might have shifted to other financial entities as they await further developments in Truist's narrative. This observation comes after Truist has settled down from a series of strategic announcements made earlier in the year.

In other recent news, Truist Financial Corporation made a series of strategic changes and financial results. The company reported robust quarterly results, with adjusted earnings of $1.2 billion, translating to $0.91 per share, and a 3% rise in adjusted revenue.

Truist has also made significant changes to its executive compensation program, granting Leadership Awards to key executives and restructuring its annual incentive performance award program for 2024.

The company has also seen changes in its personnel, with the retirement of Patrick C. Graney III from the Board of Directors due to health concerns and the appointment of Steve Hagerman as its new Chief Information Officer.

Analyst firms Wolfe Research and Keefe, Bruyette & Woods have adjusted their stance on Truist Financial, with Wolfe Research upgrading the stock's rating from Underperform to Peer Perform, while Keefe, Bruyette & Woods sustained its Outperform rating. However, Citi downgraded the company's stock from Buy to Neutral, citing a balanced revenue outlook.

InvestingPro Insights

Truist Financial (NYSE:TFC) has demonstrated resilience and consistency, as reflected in its commitment to shareholder returns, with a dividend that has been raised for 9 consecutive years. This is a sign of the company’s financial stability and commitment to returning value to shareholders. In addition, analysts have shown confidence in Truist's future performance, as evidenced by 14 analysts revising their earnings estimates upwards for the upcoming period, signaling a positive outlook on the bank's earnings potential.

InvestingPro data shows Truist with a market capitalization of $59.62 billion, underscoring its significant presence in the financial sector. While the bank has experienced a revenue decline in the last twelve months as of Q2 2024, with a decrease of 30.86%, it has maintained a strong return over the last year, with a price total return of 52.4%. This robust return, coupled with a high dividend yield of 4.68%, may attract income-focused investors, especially considering the bank's long history of dividend payments.

InvestingPro Tips highlight that Truist is trading near its 52-week high, at 98.5% of this peak, and has seen a large price uptick over the last six months, with a 29.38% total return. This performance suggests that the bank's stock has been gaining momentum among investors. For those interested in further insights and tips on Truist Financial, InvestingPro offers additional tips, which can be found at https://www.investing.com/pro/TFC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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