Morgan Stanley analyst Manan Gosalia maintained a Buy rating on Fifth Third Bancorp yesterday and set a price target of $60.00.
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Manan Gosalia has given his Buy rating due to a combination of factors that highlight the positive outlook for Fifth Third Bancorp. The analyst expresses confidence in the bank’s credit quality, excluding a significant one-time charge from Tricolor, and anticipates improvements in the fourth quarter. Additionally, indicators such as nonperforming loans have decreased, and the bank has taken proactive measures by pre-identifying losses with specific reserves, which strengthens the credit quality outlook.
Furthermore, Gosalia acknowledges the short-term pressure on expenses and net interest margin due to investments in the bank’s retail deposit franchise. However, these investments are expected to be beneficial in the long run, as evidenced by the growth in consumer households in the Southeast. The planned expansion of new branches and the bank’s strategic focus on retail deposit growth are seen as positive drivers for future earnings, supporting the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $51.00 price target.
Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FITB in relation to earlier this year.