Truist Financial Corporation (TFC) Projected to Exhibit Loan Growth

Truist Financial Corporation (NYSE:TFC) is one of the 10 best banking stocks to buy according to hedge funds.

On February 17, Morgan Stanley analyst Manan Gosalia raised the price target on Truist Financial Corporation (NYSE:TFC) from $56 to $69. In the process, the analyst also upgraded the stock from an Equal Weight to an Overweight rating.

Gosalia estimates that the bank holds approximately $14.6 billion in excess capital above regulatory requirements, representing about 22% of its market cap, the highest level within Morgan Stanley’s coverage. The analyst also increased loan growth projections to 4.7% for 2026 and 5% for 2027.

In addition, Truist’s share buybacks are expected to accelerate to around a $5 billion annual rate in 2027 and 2028, well ahead of street expectations. Given the stock’s lower valuation relative to peers, Gosalia believes that Truist Financial Corporation (NYSE:TFC) can efficiently deploy additional capital toward repurchases, resulting in a faster earn-back.

On February 5, John Pancari from Evercore ISI also increased the firm’s price target on Truist Financial Corporation (NYSE:TFC) from $58 to $64, maintaining an Outperform rating on the shares. This upward revision results in an upside potential of almost 29% for investors.

Truist Financial Corporation (NYSE:TFC) is one of the top 10 bank holding companies across the U.S. market. It offers consumer, wholesale, and small business banking solutions, as well as trust services. Some of its products include asset management, consumer lending, mortgage lending, and direct retail lending.

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