Keefe Bruyette downgraded Fifth Third to Market Perform from Outperform with a higher price target of $37, up from $33. The stock has rallied 38% since the spring as the company has posted strong and visible earnings compared to peers in 2023, the analyst tells investors in a research note. Thanks to the fall in interest rates in the fourth quarter, the firm also sees mid-teens growth in tangible book value and a 100bp increase in CET1 ratio sequentially, The firm states. Keefe Bruyette adds however that these strengths are likely priced in as the stock has moved from a 5% discount earlier in the year to a 10% premium relative to its peer group vs. a 2% historical discount.
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