Citi opened a “30-day negative catalyst watch” on Fifth Third (FITB) and “90-day negative catalyst watch” on Northern Trust (NTRS) heading into the Q2 reports. The firm keeps Neutral ratings on both stocks. Citi sees Fifth Third as among the hardest hit of regional banks from higher unrealized losses in the quarter. The analyst sees potential for a negative market reaction to the print, noting the stock currently trades at a relative premium to regional peers. For Northern Trust, the firm continues to believe that consensus estimates need to be reset lower. With the stock trading at a premium on Citi’s implied cost of equity metric, the shares may come under pressure as earnings are reset lower, says Citi.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See today’s best-performing stocks on TipRanks >>
Read More on FITB:
- Fifth Third price target lowered to $28 from $29 at Morgan Stanley
- Fifth Third call volume above normal and directionally bullish
- Fifth Third put volume heavy and directionally bearish
- Fifth Third price target lowered to $34 from $36 at Barclays
- Fifth Third price target lowered to $31 from $32 at Piper Sandler