JP Morgan Raises Target Price on Truist Financial (TFC) to $47, Keeps Neutral Call

Truist Financial Corporation (NYSE:TFC) is 1 of the 10 Best Bank Stocks to Buy successful 2026.

On February 9, JPMorgan expert Vivek Juneja raised his people terms connected Truist Financial by 10.7% to $57.00 (from $51.50) but maintained his Neutral standing connected the stock. This people terms alteration comes arsenic JPMorgan updated its large-cap slope forecasts pursuing the merchandise of the 4th 4th results.

The steadfast prefers slope stocks successful this marketplace rhythm for 5 reasons. (1) Good economical trends, (2) Steady fundamentals, (3) Sticky inflation, which could forestall the US Fed from cutting rates excessively overmuch successful the agelong word (although helium does deliberation the Fed volition chopped rates doubly successful 2026), (4) Favorable regulatory environment, and (5) An uptick successful slope consolidations, arsenic shown by the caller M&A enactment amongst banks.

Truist Financial, connected January 21, released its Q4 2025 earnings. The study showed nett income disposable to communal shareholders grew 5.7% YoY to $1.29 cardinal (from $1.22 billion). On a per diluted stock basis, net grew 9.9% YoY to $1.00 (from $0.91). This net maturation yielded a humble summation successful some instrumentality connected mean assets (3 ground points YoY to 0.99%, from 0.96%) and instrumentality connected mean communal equity (10 ground points YoY to 8.5% from 8.4%).

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The net maturation was driven by a 3.1% YoY summation successful nett involvement income (NII) to $3.70 cardinal (from $3.59 billion), which successful crook was driven purely by earning assets maturation arsenic nett involvement borderline (NIMs) was flat. Earning assets grew 2.5% YoY to $484.6 cardinal (from $472.6 billion), virtually each of which came from a 7.4% YoY enlargement successful the bank’s indebtedness publication to $330.4 cardinal (from $306.4 billion). Cash and concern securities, meanwhile, fell 4.8% YoY to $158.6 cardinal (from $165.5 billion).

The $12 cardinal YoY summation successful earning plus basal was supported by a $9.8 cardinal YoY summation successful deposits to $400.5 cardinal (from $390.5 billion). Debt supplemented the bank’s backing needs, increasing $5.6 cardinal YoY to $69.8 cardinal (from $64.2 billion).

NIMs, meanwhile, were level YoY astatine 3.07%, arsenic the effects of the betterment successful backing costs perfectly offset the deterioration successful earning plus yields. The bank’s mean backing outgo improved by 35 ground points YoY to 2.67% (from 3.02%), portion net output fell 20 ground points YoY to 5.05% (from 5.25%).

Asset prime was comparatively unchangeable crossed aggregate metrics. Nonperforming loans (as a % of loans) accrued 1 ground constituent YoY to 0.48% (from 0.47%), nett charge-offs (as a % of loans) decreased 2 ground points YoY to 0.57% (from 0.59%), portion recognition costs (as a % of loans) accrued 1 ground constituent YoY to 0.62% (from 0.61%).