Keefe Bruyette Refreshes Fifth Third (FITB) Outlook Following Recent Meetings

Fifth Third Bancorp (NASDAQ:FITB) is included among the 12 Best Income Stocks to Buy Now.

Keefe Bruyette Refreshes Fifth Third (FITB) Outlook Following Recent Meetings

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On December 17, Keefe Bruyette raised its price target on Fifth Third Bancorp (NASDAQ:FITB) to $53 from $50 and kept a Market Perform rating on the shares. The firm refreshed its estimates after recent conference updates and meetings with management.

On December 9, the bank announced a strategic acquisition aimed at strengthening its position in multifamily housing finance across the US. Fifth Third Bancorp (NASDAQ:FITB) entered into a definitive agreement to acquire Mechanics Bank’s Delegated Underwriting and Servicing (DUS) business line. The deal includes an experienced operating team and a $1.8 billion unpaid principal balance servicing portfolio.

John Hein, head of Commercial Real Estate at Fifth Third, made the following comment:

“This acquisition strengthens Fifth Third’s leadership in commercial real estate finance and expands our ability to serve multifamily developers and investors with competitive, permanent financing solutions. Multifamily housing is the largest component of our commercial real estate portfolio, and this move enables us to better support our clients and the housing needs in the communities we serve.”

The DUS program sits at the center of Fannie Mae’s multifamily lending platform and is built to support liquidity and stability in the housing market. By acquiring the DUS license, Fifth Third gains direct access to Fannie Mae products and a proven servicing framework. The move also deepens the bank’s focus on financing solutions that support housing affordability.

Fifth Third Bancorp (NASDAQ:FITB) is a major US bank holding company that provides a broad range of financial services to consumers, businesses, and institutional clients.

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