Banking, finance, and taxes

Analysts Keep Raising Target Prices on Financial Stocks After Earnings

Chris Lange

Published: January 25, 2018 1:45 pm

Last Updated: January 12, 2020 4:05 am

Earnings season is underway and that markets are pushing even higher highs. The recent tax reform law has aided many of these companies and markets, making these new highs a reality. Not to mention, a slew of financial firms that kicked off this earnings season have contributed to this rally as well, and as a result analysts are raising their target prices on these firms.

24/7 Wall St. has included some brief highlights from these earnings reports, as well as what analysts have said about these firms afterward.

Discover Financial Services (NYSE: DFS) reported its fourth-quarter financial results on Wednesday. The firm said that it had $1.55 in earnings per share (EPS) and $3.05 billion in revenue, compared to consensus estimates that called for $1.53 in EPS and $1.85 billion in revenue.

Here’s what analysts had to say after the fact:

• Barclays cut its price target to $94 from $95.
• Bernstein raised its price target to $100 from $96.
• BMO cut its price target to $93 from $97.
• Compass Point cut the price target to $85.
• Credit Suisse raised the price target to $95 from $91.
• Evercore ISI raised its price target to $82 from $80.
• Morgan Stanley raised its price target from $79 to $91.
• Oppenheimer raised the price target to $88 from $84.
• Wells Fargo raised the price target to $84 from $83.

Shares of Discover were last seen up 1.5% at $79.92, with a consensus analyst price target of $86.60 and a 52-week range of $57.50 to $81.25.

Fifth Third Bancorp (NASDAQ: FITB) released its most recent quarterly report on Tuesday. The firm said that it had $0.52 in EPS, compared with the consensus estimate of $0.47 in EPS. Deutsche Bank raised the price target to $33 from $27, and KBW raised its price target to $35 from $34. Shares of Fifth Third recently traded at $33.03, with a consensus price target of $33.67 and a 52-week range of $23.20 to $33.51.

Huntington Bancshares Inc. (NASDAQ: HBAN) more or less met estimates in its quarterly report. The firm posted $0.26 in EPS on $1.11 billion in revenue, versus consensus estimates of $0.26 in EPS and $1.1 billion in revenue. A couple of analysts had something to say about the stock. Deutsche Bank raised the price target to $18 from $15, and KBW raised its price target to $16.75 from $16.25. Shares of Huntington traded at $16.11, with a consensus price target of $17.21 and a 52-week range of $12.14 to $16.33.

Northern Trust Corp. (NASDAQ: NTRS) released its fourth-quarter earnings on Wednesday. The company said that it had $1.51 in EPS on $1.44 billion in revenue. The consensus estimates called for $1.30 in EPS and $1.41 billion in revenue. Analysts had this to say afterward:

• Deutsche Bank cut price target to $110 from $112.
• Morgan Stanley raised its price target to $104 from $91.
• Raymond James raised its price target from $116 to $123.
• RBC raised its price target to $110 from $97.
• Sandler O’Neill has a Hold rating and raised its price target to $113.

Shares of Northern Trust recently traded at $105.50, with a consensus price target of $108.89 and a 52-week range of $81.92 to $108.91.

Prosperity Bancshares Inc. (NYSE: PB) barely missed estimates for its fourth-quarter earnings report. The firm said it had $0.99 in EPS and $185.3 million in revenue. Consensus estimates had called for $1.00 in EPS and $185.4 million in revenue. A few analysts weighed in on the stock:

• D.A. Davidson raised the price target to $80 from $70.
• SunTrust Robinson raised the price target to $85 from $80.
• Wedbush cut its price target to $76 from $77.

Shares of Prosperity were last seen at $76.34, with a consensus price target of $76.33 and a 52-week range of $55.84 to $77.87.

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Texas Capital Bancshares Inc. (NASDAQ: TCBI) beat estimates in its most recent quarterly report, which it shared on Wednesday. The bank posted $1.19 in EPS and $268.9 million in revenue, compared with consensus estimates of $1.16 in EPS on revenue of $219.8 million. Analysts weighed in:

• Compass Point raised its price target to $98.
• D.A. Davidson raised the target to $105 from $90.
• Deutsche Bank raised the price target from $103 to $105.
• Jefferies raised the price target to $114.
• KBW cut its price target to $98 from $100.
• Raymond James raised the stock to Outperform.
• RBC raised the price target to $109 from $94.

Shares of Texas Capital traded at $99.00, with a 52-week range of $69.65 to $102.90 and a consensus price target of $98.97.

U.S. Bancorp (NYSE: USB) released its fourth-quarter results recently too. The firm posted EPS of $0.88 and $5.6 billion in revenue, compared with consensus estimates of $0.87 in EPS and $5.6 billion in revenue. Deutsche Bank upgraded the stock to Buy from Hold and raised the price target to $63 from $60. Shares of U.S. Bancorp were last seen at $58.01, with a consensus price target of $59.38 and a 52-week range of $49.54 to $58.10.