Fulton Financial (FULT) Stock Forecast & Price Target

Fulton Financial Corp has demonstrated an improvement in its capital strength, with the Common Equity Tier 1 (CET1) ratio increasing to 11.3% from 11.0% in the last quarter, indicating solid capital flexibility for future growth. The bank's ability to generate higher net interest income (NII), evidenced by a net interest margin (NIM) increase of 4 basis points along with a positive performance in pre-provision net revenue (PPNR) that beat expectations, underscores its operational efficiency. Although non-performing assets (NPAs) have increased slightly to 0.77% of total assets due to specific project exposure, this change is manageable within the context of the bank’s overall financial health and performance.

Fulton Financial Corp has experienced a decline in purchase accounting accretion, which decreased to $11.4 million from $13.1 million in the previous quarter, falling short of the expected $12 million range. Additionally, while end-of-period (EOP) loans increased by 3% quarter-over-quarter, average loans dropped by 2%, indicating potential weakness in loan demand or growth. The broader context of a 16% year-to-date decline in the stock price, amid a sell-off in bank stocks, further contributes to a negative outlook for the company's stock performance.