-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
After reviewing Q1 earnings, we reduce our 12-month target price by $1 to $56, 11.2x our 2027 EPS estimate, a wider risk premium than FITB's five-year forward P/E average of 10.3x given healthy fee income expectations and an improving regulatory environment. We lower our 2026 EPS estimate by $0.07 to $4.09 but increase 2027's by $0.10 to $5.02. This was a transformative quarter for FITB, which completed its largest acquisition in history, vaulting from the 19th to the 13th largest U.S. bank by assets. While we continue to believe the acquisition will create headwinds to organic growth, it delivered immediate benefits: credit quality improved markedly, and net interest margin expanded to 3.30%, the highest level since 2022. The trade-off came in capital, with the CET1 ratio declining 80 bps Q/Q to 10.0%, among the lowest in the peer group. However, given the likely relief from newly-proposed Basel III capital rules, we view this more modest capital position as acceptable.