Analyst Ebrahim Poonawala of Bank of America Securities reiterated a Buy rating on M&T Bank, with a price target of $225.00.
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Ebrahim Poonawala’s rating is based on several compelling factors that highlight M&T Bank’s strong financial position and potential for growth. The bank’s core earnings per share for the third quarter exceeded expectations, driven by higher fee income and lower credit costs. Despite slightly higher expenses anticipated in the fourth quarter, the overall financial outlook remains positive, with net interest income expected to align with previous forecasts. The bank’s capital position is notably robust, with a significant buffer above the regulatory minimum CET1 ratio, which provides flexibility and defensibility in uncertain economic conditions.
Ebrahim Poonawala also points to the nearing end of commercial real estate portfolio run-off as a positive indicator for future loan growth. The anticipated stabilization and subsequent growth in this area are expected to support the bank’s net interest margin. Additionally, the improving credit quality of the bank’s commercial real estate portfolio further strengthens its financial standing. These factors combined make M&T Bank an attractive investment opportunity, justifying the Buy rating with a price objective of $225.
Poonawala covers the Financial sector, focusing on stocks such as Truist Financial, Citigroup, and Fifth Third Bancorp. According to TipRanks, Poonawala has an average return of 12.9% and a 67.52% success rate on recommended stocks.
In another report released on October 17, Truist Financial also maintained a Buy rating on the stock with a $217.00 price target.