Morgan Stanley Sees Support For Fifth Third Bancorp Investment Thesis

In a report published Wednesday, Morgan Stanley analyst Ken A. Zerbe reiterated an Overweight rating and $26.00 price target on

. In the report, Morgan Stanley noted, “Our investment thesis is that FITB should trade at a P/E multiple more in line with the peer group (of 14x 2015e EPS) given similar, if not better, profitability (ROA and ROE); broadly in-line loan growth; greater exposure to C&I lending; and a higher percentage of fee income (which diversifies revenues and adds to profitability).” Fifth Third Bancorp closed on Tuesday at $20.06.