Truist Financial price target raised to $42 from $40 at RBC Capital

RBC Capital raised the firm’s price target on Truist Financial to $42 from $40 and keeps an Outperform rating on the shares after its Q4 results. The company’s diversified business model, along with having one of the best positioned banking franchises in the U.S., continues to deliver solid results, though Truist has also struggled with higher levels of expense growth coming out of the merger of its predecessor banks, the analyst tells investors in a research note. RBC contends that Truist could monetize its ownership in its insurance subsidiary and use the proceeds to restructure its underwater bond portfolio.