Synovus price target raised by $8 at Truist, here’s why

Truist analyst Brandon King raised the firm’s price target on Synovus to $46 from $38 and keeps a Buy rating on the shares as part of a broader research note previewing 2024 for Regional and Community Banks. Tail risks for the sector have been diminished with the likely peak in rates and inflation moving lower, and while the firm can “appreciate concerns” on credit as the largest outstanding risk, it also believes that losses will remain manageable, the analyst tells investors in a research note. Banking valuations have re-rated materially recently, but earnings revisions now also have less downside risk and a very positive setup for 2025, with the general sentiment still remaining skeptical of the recent rally, the firm added.