DA Davidson Analyst Upgrades Synovus Financial with Strong Buy Rating

DA Davidson's Kevin Fitzsimmons raised their price target on Synovus Financial (NYSE: SNV) by 9.3% from $43 to $47 on May 7, 2024. The analyst maintained their Strong Buy rating on the stock.

Synovus Financial Corporation, the holding company for Synovus Bank, recently announced plans to reduce risk-weighted assets by $1 billion to $2 billion. This move aims to free up $100 million to $200 million in CET1 (Common Equity Tier 1) capital for a bond reorganization. Fitzsimmons' positive outlook and upgrade reflect confidence in Synovus Financial's strategy.

SNV currently enjoys favorable ratings from top-rated analysts, with 72.7% considering it a Strong Buy or Buy, and 27.3% rating it as a Hold. No analysts recommend selling the stock. This consensus among analysts highlights the generally positive sentiment towards Synovus Financial's future performance.

According to the consensus forecast, SNV is expected to deliver earnings per share (EPS) of $5.04 in the upcoming year. If these predictions hold true, the next yearly EPS will see a significant increase of 72% compared to the previous year. This projected growth further solidifies the optimistic outlook for Synovus Financial.

While SNV's stock price has experienced a dip of 4.2% since its last quarterly report on March 31, 2024, it has still managed to achieve an impressive year-over-year increase of 38.9%. Notably, Synovus Financial has outperformed the S&P 500, which has seen a 25.4% increase during the same period. These figures suggest that Synovus Financial has the potential to deliver strong returns for investors.

Kevin Fitzsimmons, the DA Davidson analyst who raised the price target, is ranked in the top 19% of Wall Street analysts by WallStreetZen. With an average return of 9.5% and a win rate of 58.1%, Fitzsimmons specializes in the Consumer Cyclical and Financial Services sectors. This expertise adds credibility to their analysis and reinforces the confidence in their Strong Buy rating for Synovus Financial.

Synovus Financial Corporation, headquartered in Columbus, GA, is a prominent player in the commercial and retail banking sector. The bank offers a range of services including treasury management, asset management, capital market activities, institutional trust services, as well as commercial, financial, and real estate loans. Its retail services encompass deposit accounts, mortgages, consumer loans, investment and brokerage services, online banking, and credit and debit card services. Synovus Bank, founded in 1888, has a long-standing presence in the financial industry.

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