Diversified financial services company Fifth Third Bancorp (NASDAQ: FITB) recently revealed that it has entered into a definitive agreement to acquire Dividend Finance, a point-of-sale (POS) lender focused on providing financing solutions for residential renewable energy. The deal is likely to close in the second quarter of 2022.
This acquisition is in line with Fifth Third’s environmentally sustainable strategies to support customers in the transition to a more sustainable future.
The CEO of Fifth Third, Greg Carmichael, said, “The addition of Dividend Finance to our renewable energy portfolio enhances the scale of Fifth Third’s growing digital service capabilities and supports the Bank’s commitment to environmental leadership in financial services. Together, we will help our customers with innovative, technology-driven financial solutions.”
Recently, UBS analyst Erika Najarian initiated coverage on the stock with a Buy rating and a price target of $56, which implies upside potential of 16.7% from current levels.
The analyst remains optimistic about the prospects of large regional banks in the country because of their net interest income growth visibility.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 8 Buys and 6 Holds. The average Fifth Third price target of $50.08 implies that the stock has upside potential of 4.4% from current levels. Shares have gained about 53.1% over the past year.
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