Fulton Financial (FULT) Stock Forecast & Price Target

Fulton Financial Corp has demonstrated a solid increase in its Common Equity Tier 1 (CET1) ratio, which rose to 11.3%, indicating strong capital flexibility and resilience. The company's pre-provision net revenue (PPNR) exceeded expectations by $0.04, driven by a $0.02 increase in net interest income (NII) and a widening net interest margin (NIM) by 4 basis points, signaling effective management of interest costs. Additionally, earnings estimates for 2025 have been revised upward by $0.20 to $2.05, reflecting expectations of lower credit costs and continued growth in NII, which further supports a positive outlook for the stock.

Fulton Financial Corp has experienced a decline in purchase accounting accretion, falling from $13.1 million last quarter to $11.4 million, which is below the expected $12 million. Additionally, average loans have decreased by 2% year-over-quarter, indicating potential concerns in loan demand, while overall economic activity remains under pressure due to ongoing challenges related to COVID-19. Furthermore, the recent downturn in stock performance, with a year-to-date decline of 16%, reflects broader vulnerabilities in the banking sector, exacerbating risks tied to credit costs and margin pressures.