Truist Financial upgraded to Overweight from Equal Weight at Stephens

Stephens analyst Terry McEvoy upgraded Truist Financial to Overweight from Equal Weight with a price target of $43, up from $41. The “dust has settled on the not-so-secret sale” of Truist Insurance Holdings, allowing unhappy holders to invest elsewhere, says the firm. While it understands the criticism of selling a valuable business to fix the problem of a low-yielding securities portfolio, Stephens argues that adding about 230 basis points of CET1 capital should “reinvigorate the growth” of Truist’s core banking franchise, which it says “overlaps with some of the more vibrant markets in the U.S.” The firm sees an embedded opportunity to increase EPS and ROTCE through capital deployment and securities portfolio restructurings that is “unique to Truist,” the analyst added.