Bank stock price targets, profit outlooks slashed at Truist as recession looms and liquidity environment gets worse
Truist analyst Brandon King cut stock price targets and earnings estimates for a host of banks, on expectations that net interest margins will fall, loan growth will slow and credit costs will increase. "[W]e continue to forecast a recession later this year with incrementally higher NCOs [net charge offs], provisioning and reserve levels," King wrote in a note to clients. He believes continued credit tightening by the Federal Reserve will put further pressure on deposit flows and pricing. "We are also anticipating less excess liquidity deployment as banks keep more balance sheet liquidity on hand," King wrote. Among the biggest percentage cuts to stock price targets,
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March 23, 2023 07:37 ET (11:37 GMT)
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