Morgan Stanley analyst Manan Gosalia downgraded the rating on M&T Bank to a Hold today, setting a price target of $251.00.
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Manan Gosalia has given his Hold rating due to a combination of factors influencing M&T Bank’s current market position. The bank has effectively managed to reduce its criticized loans and release excess capital, which has supported higher returns to shareholders through dividends and buybacks. However, this capital return strategy is now well-understood by the market, and consensus estimates have already adjusted to reflect the expected buyback activity for the upcoming quarters.
Despite M&T Bank’s strong credit underwriting and growing fee businesses, the anticipated rate cuts present fewer positive catalysts for the bank in the near term. The bank’s shares are trading in line with its peers, and while there is potential for M&T to trade at a premium in the future, the immediate outlook suggests limited upside. Consequently, Gosalia has opted to move to the sidelines, favoring other opportunities within the coverage universe.
According to TipRanks, Gosalia is a 4-star analyst with an average return of 9.3% and a 59.89% success rate. Gosalia covers the Financial sector, focusing on stocks such as Cadence Bank, Huntington Bancshares, and M&T Bank.