Fifth Third Bancorp (FITB) PT Lowered to $27 at Evercore ISI
Evercore ISI lowered its price target on Fifth Third Bancorp (NASDAQ: FITB) to $27.00 (from $29.00) while maintaining a Underperform rating.
Analyst John Pancari is modestly lowering 2018 and 2019 EPS ests from $2.55 and $2.76 to $2.52 and $2.74 to reflect a lower NIM & NII trajectory related to higher funding costs from the MBFI acq, a higher expense run rate and lower fees. They are establishing a 2020 EPS est of $3.03.
"Despite intact credit and expectations for loan growth to strengthen a bit, we remain cautious on FITB's shares given our more conservative EPS outlook (expenses and NIM) and limited upside catalysts, in our view," Pancari commented. "At 11.2x our 2019 EPS est, FITB trades essentially in line peer large cap banks, despite having a moderately slower EPS growth outlook (8.6% vs 10.7%) and lower return profile."