Diversified financial services company Fifth Third Bancorp (FITB) recently announced the acquisition of Provide, a digital platform that makes running healthcare practices easier. The financial terms of the deal have not yet been disclosed.
Following the news release, shares of the company rose marginally on Tuesday to close at $37.95.
The acquisition follows an investment in 2018 by Fifth Third Bancorp in Provide. Following the acquisition, Provide will continue as an independent entity.
CEO of Fifth Third Bancorp, Greg Carmichael, said, “Together, we can deliver a client experience that enables healthcare providers to focus on what they do best—providing the care their patients need while we make their banking experience convenient and efficient.” (See Fifth Third Bancorp stock chart on TipRanks)
On June 3, Robert W. Baird analyst David George assigned a Buy rating to the stock. Notably, the analyst raised the price target on the stock from $39 to $44 (15.94% upside potential).
According to George, the company’s strong liquidity position, muted credit risk profile, and favorable credit trends give it a strong footing.
The stock has a Moderate Buy consensus rating based on 8 Buys and 5 Holds. The average Fifth Third Bancorp analyst price target of $42.46 implies 11.9% upside potential from current levels. Shares have gained 80% over the past year.
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