Fulton Financial (FULT) Stock Forecast & Price Target

Fulton Financial Corp has demonstrated a strong capital position with a Common Equity Tier 1 (CET1) ratio increase to 11.3%, indicating ample capital flexibility for future growth. The company's Performance Before Provision for Credit Losses (PPNR) exceeded expectations, with net interest income (NII) rising as net interest margin (NIM) improved by 4 basis points due to reduced costs on certificates of deposits. Additionally, earnings estimates for 2025 have been revised upward by $0.20, now projected at $2.05, reflecting anticipated 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, which fell to $11.4 million from $13.1 million in the previous quarter, diverging from initial estimates and indicating potential revenue pressure. Furthermore, average loans decreased by 2% LQA, highlighting a concerning downward trend in loan demand, despite a slight increase in end-of-period loans. Compounded by the broader downturn in bank stocks, resulting in a 16% year-to-date drop, Fulton faces risks from increased credit costs and margin pressures that could adversely impact its financial stability.