Vining Sparks Maintains Their Buy Rating on Fifth Third Bancorp (FITB)

By Austin Angelo

In a report released today, Marty Mosby from Vining Sparks maintained a Buy rating on Fifth Third Bancorp (FITBResearch Report), with a price target of $36. The company’s shares opened today at $27.56.

Mosby said:

“Much like the other Large Cap U.S. Banks, FITB currently trades at a significant discount to what we believe is a reasonable valuation. We don ’t believe that FITB’s current 139% price-to-tangible book value, after adjusting for the MB Financial acquisition, is representative of the 17% return -on-tangible common equity, expected in 2019E, or its current 3.6% dividend yield. As earnings per share continue to grow at close to 10% in 2019E, following a 39% increase in 2018, we also believe the 9.5x price-to-earnings is also unsustainably low. 35% total return potential seems high, we would remind investors that FITB traded at almost $35 less than a year ago.”

Mosby has an average return of 16.5% when recommending Fifth Third Bancorp.

According to TipRanks.com, Mosby is ranked #121 out of 5129 analysts.

Fifth Third Bancorp has an analyst consensus of Moderate Buy, with a price target consensus of $30.38, representing a 10.2% upside. In a report issued on January 9, Citigroup also upgraded the stock to Buy with a $29 price target.

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Based on Fifth Third Bancorp’s latest earnings release for the quarter ending September 30, the company reported a quarterly revenue of $1.84 billion and net profit of $428 million. In comparison, last year the company earned revenue of $1.71 billion and had a net profit of $504 million.

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Fifth Third Bancorp engages in the provision of banking and financial services, retail and commercial banking, consumer lending services, and investment advisory services through its subsidiary Fifth Third Bank. It operates through the following segments: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management.