Keefe Bruyette analyst David Konrad upgraded Truist Financial to Outperform from Market Perform with a price target of $36, down from $37. The stock is trading at a 5% discount to peers versus a historical 5% premium, driving 15% upside in the firm’s “base case scenario,” the analyst tells investors in a research note.the analyst tells investors in a research note. Keefe says a more challenging environment increases the probability of monetizing Truist Insurance Holdings and restructuring the bond portfolio. This would result in 20% earnings accretion, meaningful reduction in rate risk, and better than peer capital and operating leverage, contends the firm. Keefe now sees an “asymmetrical risk/reward relationship” on Truist shares.
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