Raymond James Cuts Truist Financial (TFC) PT, Keeps Outperform Rating

Truist Financial Corporation (NYSE:TFC) is one of the 10 Best Financial Stocks on Wall Street’s Radar. On July 18, Raymond James reduced its price target for Truist Financial Corporation (NYSE:TFC) from $50 to $48 while keeping an “Outperform” rating.

The investment firm noted that Truist Financial Corporation (NYSE:TFC) shares are underperforming. Raymond James believes this reflects market concerns around near-term net interest margin/net interest income and the expected increase in investment banking fees in the second half of the year.

A closeup view of a hand inserting a credit card into an ATM machine.

The firm now projects adjusted revenue growth for Truist Financial Corporation (NYSE:TFC) to be at the low end of the company’s own target range of 1.5% to 2.5%. This view reflects the uncertain business and economic environment.

However, Raymond James noted that if there is progress on deregulation and loan growth improves, Truist Financial Corporation (NYSE:TFC) could see stronger results.

The investment firm still believes there is a “modestly positive risk-reward skew” for Truist Financial Corporation (NYSE:TFC). Raymond James pointed to the company’s progress toward mid-teens return on tangible common equity, a slight improvement in the short-term outlook for credit, and expected positive operating leverage. All of this comes as Truist Financial Corporation (NYSE:TFC) trades at a discount compared to its peers.

Truist Financial Corporation (NYSE:TFC) is an American bank holding and financial services company. It specializes in consumer and small business banking, commercial banking, corporate and investment banking, wealth management, payments, and specialized lending businesses.

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Disclosure: None. This article is originally published at Insider Monkey.