Morgan Stanley raises Truist target to $69, highlights $14.6B excess capital and 5% loan growth
Morgan Stanley raised its price target on Truist Financial Corporation to $69 from $56 and upgraded it to Overweight, citing $14.6B in excess capital (22% of market cap). Loan growth forecasts rose to 4.7% in 2026 and 5.0% in 2027, with share buybacks targeting $5B by 2027.
1. Morgan Stanley Upgrade
On February 17, Morgan Stanley analyst Manan Gosalia raised the price target on Truist Financial Corporation from $56 to $69 and upgraded the stock to Overweight, citing its valuation discount and strong capital position.
2. Excess Capital Position
Morgan Stanley estimates Truist holds approximately $14.6 billion in excess capital above regulatory requirements, representing about 22% of its market capitalization, the highest ratio across its bank coverage.
3. Loan Growth Projections
Gosalia lifted Truist's loan growth forecasts to 4.7% for 2026 and 5.0% for 2027, up from prior estimates, reflecting anticipated expansion in lending activities.
4. Evercore Upgrade and Buyback Plans
Evercore ISI raised its price target to $64 from $58 and maintained an Outperform rating, while Truist’s share repurchase program is projected to accelerate to about $5 billion annually in 2027 and 2028.