Truist Financial reinstated with an Equal Weight at Barclays

Barclays reinstated coverage of Truist Financial with an Equal Weight rating and $43 price target. The bank’s insurance sale and securities repositioning increase net interest income, improve capital, allow for the resumption of share buyback and enhance balance sheet flexibility, the analyst tells investors in a research note. However, the firm says the moves also reduce Truist’s diversification, fee income, profitability and valuation “and call into question risk management.”