Truist has revised its outlook on M&T Bank (MTB, Financial), reducing its price target from $225 to $200 while maintaining a Buy rating on the stock. This adjustment follows M&T Bank's underwhelming first-quarter earnings results.
The financial firm has updated its target multiple to approximately 10.5 times in response to the increased risk of a recession. Despite this, Truist remains optimistic about M&T Bank, citing the bank's robust levels of capital and liquidity relative to its peers, coupled with a favorable valuation.
Currently, M&T Bank's shares are trading at under 10 times the expected earnings for 2025 and under 9 times those anticipated for 2026. This valuation suggests potential for future growth, according to Truist's analysis.