UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on Fifth Third Bancorp
In a report published Friday, J.P. Morgan & Co. reiterated its Neutral rating on Fifth Third Bancorp (NASDAQ: FITB), and slightly raised its price target from $17.50 to $18.00.
J.P. Morgan noted, “Fifth Third's credit outlook continues to improve and has been a large driver of earnings growth but earnings recovery has slowed a little partly due to relatively lesser benefit from fee-based businesses. Fifth Third's EPS growth is likely to be driven by moderate loan growth, continued sizable loan loss reserve releases, and share buybacks near-term. We eventually expect more M&A in the industry given slow revenue growth and Fifth Third is likely to be a buyer, but there are currently limited sellers, in our view. In addition, FITB's stock valuation is close to the peer average. Therefore, we rate Fifth Third Neutral on a relative basis to our coverage universe as we view FITB's stock as fairly valued.”
Fifth Third Bancorp closed on Thursday at $15.49.
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