DA Davidson upgraded Fifth Third Bancorp (NASDAQ:FITB) from Neutral to Buy, raising the price target to $47 from $42. The move follows a series of investor meetings that reinforced confidence in the bank’s long-term trajectory.
Despite strong operational execution and top-tier profitability, FITB shares have lagged in 2024, and currently trade in line with peers on a 2026 P/E basis—well below the 7% premium they’ve averaged over the past five years. Analysts view this as a mispricing, especially given the company’s robust earnings power and prudent balance sheet management.
The firm also raised its valuation multiple to 11.5x earnings, citing Fifth Third’s ongoing investments in growth initiatives, consistent EPS delivery, and runway for further expansion. In DA Davidson’s view, the stock offers an attractive entry point at current levels.