Citi has upgraded Truist Financial (NYSE: TFC) from Neutral to Buy, raising its price target from $44 to $55—implying a more than 30% upside. The shift in sentiment reflects confidence in Truist’s ability to grow net interest income amid a prolonged high-rate environment. Citi projects a return on tangible common equity (ROTCE) of around 13% by 2026, with upside potential into 2027 as cost efficiencies deepen.
Truist’s recent performance underscores this optimism. First-quarter net income hit $1.2 billion or $0.87 per share. Loans and deposits saw positive growth, while expense controls led to an improved efficiency ratio. The company authorized $500 million in share repurchases with plans for an additional $750 million in Q2. Digital growth also impressed, with 195,000 new accounts opened in the quarter.
💰 Dividend Snapshot
📌 Yield: Around 5.0%, with an annual payout of $2.08 per share and stock trading near $41
📌 Payout stability supported by strong capital and earnings
📌 Consistent share buybacks enhancing shareholder value
📌 Solid coverage ratios with ample room for future returns
The upgrade positions Truist as a renewed income and value play in regional banking. Improved fundamentals, better cost discipline, and generous capital returns make this stock worth a second look for yield-focused investors.