BMO Lifts Fifth Third Bancorp Target

Shares of Fifth Third Bancorp were barely higher Monday after BMO Capital Markets raised its price target on the stock to $28 from $27 while reiterating a market perform rating following the lender’s Q2 EPS beat.

The broker also commented on the bank’s Project North Start initiative which aims to improve profitability, saying it remains skeptical of the project’s profitability targets as “it appears to be very reliant on incremental revenue generation, which has been a challenge for the industry.” BMO said the new $28 price target is based on 14 times its FY18 EPS estimate, which is above the stock’s current trading price.