Truist Financial price target raised to $51 from $44 at Argus

Argus analyst Stephen Biggar raised the firm’s price target on Truist Financial to $51 from $44 and keeps a Buy rating on the shares after its Q2 earnings beat. The results continue to be squeezed by the effects of higher interest rates, including weaker loan growth and higher deposit costs and these trends should endure through Q3 before deposit costs stabilize and as the securities portfolio has re-priced higher, the analyst tells investors in a research note. Argus adds however that Truist is also embarking on additional cost-saving initiatives, having last year announced savings targets including $300M from a headcount reduction, $250M from organizational realignment, and $200M from reduced technology spending. The firm further cites the company having completed the sale of Truist Insurance Holdings which improved its capital and liquidity, along with repositioning its balance sheet into higher-yielding investment securities.