Deutsche Bank analyst Matt O’Connor downgraded Truist Financial to Hold from Buy with a price target of $48, down from $61. The analyst believes new lows seem likely for U.S. bank stocks. Truist has "disappointed several times" on costs, had questionable capital deployment post the merger, loaded up on low rate long term securities at the wrong time and has had mixed other trends in many areas, O’Connor tells investors in a research note. Media reports that the company could IPO a portion of its broker dealer may suggest the unlocking of value "but could also point to an underlying earnings issue," contends the analyst.
Published first on TheFly
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