NEW YORK (TheStreet) -- Fifth Third Bancorp (FITB - Get Report) was upgraded to an "outperform" rating from "neutral" at Robert W. Baird with a target price of $23, up from $22.
The stock was rising 1.12% to $20.68 in pre-market trading today.
Separately, TheStreet Ratings team rates FIFTH THIRD BANCORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate FIFTH THIRD BANCORP (FITB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, expanding profit margins and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.1%. Since the same quarter one year prior, revenues slightly dropped by 1.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for FIFTH THIRD BANCORP is currently very high, coming in at 89.57%. Regardless of FITB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 24.70% trails the industry average.
- FIFTH THIRD BANCORP's earnings per share declined by 24.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, FIFTH THIRD BANCORP increased its bottom line by earning $2.01 versus $1.66 in the prior year. For the next year, the market is expecting a contraction of 14.9% in earnings ($1.71 versus $2.01).
- You can view the full analysis from the report here: FITB Ratings Report