Baird downgrades Truist to Neutral with shares closer to fair value

Baird analyst David George downgraded Truist Financial to Neutral from Outperform with an unchanged price target of $45. The firm says that with most banks hitting 52-week highs, and sentiment shifting “in one of the biggest U-turns we have ever seen,” its valuation framework and through-the-cycle thought process suggests more limited upside in most bank names. For Truist, the analyst says that while the net interest income story likely gets better, share upside more limited following the recent move. While Baird likes the Truist franchise and capital optionality over the near-term, it believes upside is more limited and the stock is closer to fair value.