Truist Financial Corp "Downgrade to Neutral: In a holding pattern" (Neutral)

研报英文原文证据摘录

Truist Financial Corp "Downgrade to Neutral: In a holding pattern" (Neutral)

Global Research

7 July 2026ab

Truist Financial Corp Equities

United StatesDowngrade to Neutral: In a holding pattern

Banks, Ex-S&L

12-month rating Neutral

Governance changes, rate backdrop bring fresh uncertainty to EPS power Prior : Buy

We are downgrading shares of TFC to Neutral, with a lower PT of $55 (from $58). While 12m price target US$55.00

shares have lagged peers this year, the recently announced CEO change and the Prior : US$58.00

prospect of rate hikes in the forward curve cloud near-term visibility on the leadership

Price (06 Jul 2026) US$51.42

roster, talent retention, near-term EPS power, and recently introduced medium-term

targets. While investors typically embrace change in an underperforming situation (stock RIC: TFC.N BBG: TFC US

has lagged the BKX by ~73pp since the close of the BBT/STI deal that created it, and

Trading data and key metrics

trailing 3-year ROTCE is ~280bp lower than regional bank peers), we think strategic and

52-wk range US$55.81-41.09

EPS uncertainty will preclude the multiple (10x '27E) from re-rating. Our PT is based on

target multiples of 12x/11x '26/'27E EPS and 1.6x TBV. Market cap. US$64.1b

Shares o/s 1,246m (COM)

Five key reasons for the downgrade, despite underperformance Free float 100%

1. Leadership changes underneath. TFC's incoming CEO, Mike Lyons, is an Avg. daily volume ('000) 2,792

outsider, and in general such change comes with senior talent turnover. At Citi, 3 Avg. daily value (m) US$137.4

out of 11 execs that were direct reports to CEO Fraser's predecessor remain, while Common s/h equity (12/26E) US$57.7b

at WFC, CEO Scharf retained 0 out of 9 direct reports to the previous CEO. Further, P/BV (12/26E) 1.0x