Price Target Increase#

Evercore ISI has raised its price target for Truist Financial (NYSE:TFC) from $55 to $58, while keeping an Outperform rating. The stock is currently trading at $50.95, with a market capitalization of $63.4 billion and a price-to-earnings (P/E) ratio of 12.6, which indicates how much investors are willing to pay for each dollar of earnings.

Earnings Estimates Revised#

The firm has also updated its earnings per share (EPS) estimates for 2026 and 2027, increasing the 2026 estimate to $4.55 from $4.51 and the 2027 estimate to $5.22 from $5.19. These changes are due to a more favorable outlook for fee income, a lower expected tax rate, and a reduced number of shares outstanding. However, this is somewhat balanced by a decrease in net interest income, which is the income generated from lending activities after paying interest on deposits.

Financial Performance Insights#

Evercore ISI pointed out that the guidance for net interest income was lowered in the first quarter of 2026, which has affected revenue expectations due to pressures on deposit pricing and a slower start in lending. On a positive note, fee income trends are improving, and loan growth is expected to strengthen.

Confidence in Management#

The firm expressed confidence in Truist Financial's management, citing a solid operating leverage and a well-managed credit environment. They support the bank's targets for a 14% to 15% return on tangible common equity for 2026 and 2027, while the current return on common equity stands at 9%. Additionally, Truist has a strong history of returning capital to shareholders through share buybacks and a dividend yield of 4.08%, with 54 consecutive years of dividend payments.

Recent Earnings Report#

In its recent first-quarter 2026 earnings report, Truist Financial exceeded analysts' expectations with an EPS of $1.09, compared to a forecast of $1.00. However, the company's revenue was slightly below expectations at $5.15 billion, compared to the projected $5.17 billion. Following these results, RBC Capital also raised its price target for Truist shares from $51 to $53, citing the bank's diversified business model and strong market position as key strengths.