Truist Financial (TFC) Shows Steady Path Forward Despite Mixed Quarter

Truist Financial Corporation (NYSE:TFC) is one of the best bank stocks to buy trading under book value. On July 21, Morgan Stanley bumped up its price target on Truist Financial Corporation (NYSE:TFC) to $48 from $47 while maintaining an Equal Weight rating. With shares currently trading at $44.80, the new target suggests modest upside potential of around 7%. The adjustment follows the company’s second-quarter earnings, which the firm described as a “mixed quarter,” reflecting both areas of strength and lingering challenges.

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

Despite the mixed results, Morgan Stanley raised its earnings per share estimates for Truist by 1.5% for 2025 and 1.9% for 2026. That upward revision points to cautious optimism about the bank’s ability to improve profitability over the next couple of years. Truist continues to work through expense pressures and shifting interest rate dynamics, both of which have impacted the broader regional banking sector.

Still, Truist’s solid credit quality and strong capital levels provide a stable base as it works to navigate this transition period. If the bank can show consistent improvement in fee income and manage costs more effectively, the stock could see more upside potential. For investors seeking dependable income and long-term value, Truist remains a name worth watching.

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Disclosure: None.