Fifth Third initiated with a Neutral at DA Davidson amid ‘well deserved premium’

DA Davidson analyst Peter Winter initiated coverage of Fifth Third with a Neutral rating and $36 price target. The bank is one of the best managers of the balance sheet from an interest rate perspective, but his neutral stance reflects the stock’s valuation as Fifth Third has closed the discount in the last few years and is now trading at a "well-deserved" premium on a both a price to earnings and price to tangible book value basis, the analyst tells investors in a research note.