DA Davidson Stays Positive on Fifth Third Bancorp (FITB), Keeps Buy Rating
The investment firm still has a positive view of the banking company despite noting that Fifth Third Bancorp (NASDAQ:FITB) has indicated loan growth will likely moderate in the second half of 2025. The company has also tempered its fee income growth guidance for the full year. This prompted DA Davidson to slightly reduce its earnings per share forecasts for Fifth Third Bancorp (NASDAQ:FITB).
An empowered woman in the boardroom leading a discussion on the company's wealth & asset management strategy.
According to DA Davidson, the company's management is still aiming to deliver 150 to 200 basis points of positive operating leverage, even if the capital markets do not recover. The firm highlighted strong first-half 2025 performance and noted that Fifth Third Bancorp (NASDAQ:FITB) has several expense reduction options available.
Additionally, DA Davidson's analysis suggests that the company is on track to achieve record net interest income even without interest rate cuts from the Federal Reserve or any further loan growth.
Fifth Third Bancorp (NASDAQ:FITB) is a bank holding company for Fifth Third Bank, which offers a wide range of financial services to individuals, families, and businesses.
While we acknowledge the potential of FITB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
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