Truist Financial price target lowered to $42 from $56 at Morgan Stanley

Morgan Stanley analyst Betsy Graseck lowered the firm’s price target on Truist Financial to $42 from $56 and keeps an Equal Weight rating on the shares. The firm is lowering 2023 and 2024 EPS estimates for the large-cap banks by a median 4% and 15%, respectively, to reflect accelerating deposit betas driving down net interest margins, tightening lending standards, slowing loan growth and boosting net charge offs. The firm, which contends that high inflation coupled with quantitative tightening is "a tough environment for banks," argues that it is "too early to go long" large-cap banks as a group.