Truist Financial (TFC) delivered strong Q1 results that are laying the foundation for better profitability ahead, RBC Capital Markets said in a Friday note.
The company is focused on raising shareholder value by increasing its return on tangible common equity to 16% to 18% and returning about 80% of earnings with stock buybacks and dividends in 2026, the report said.
The note also said its 2026 outlook was generally in-line with RBC expectations, led by moderate net interest income and fee revenue growth, which combined with strong repurchase activity, will likely lead to double-digit EPS growth in 2026.
RBC maintained its outperform rating on the stock while raising its price target to $53 from $51.
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