Odeon analyst reiterates buy on Truist Financial as it eyes boost from Hurricane Ian rebuilding efforts

Odeon Capital Group analyst Richard Bove on Tuesday reiterated a buy rating on Truist Financial Corp. and said the bank’s role as leading lender in Fort Myers, Fla., will position it to play a role in the rebuilding effort for Hurricane Ian. “It is in the right place at the right time to benefit from the havoc created by Hurricane Ian,” Bove said. Truist’s BB&T unit ranks as the largest bank in Fort Myers and Truist also owns the largest insurance brokerage complex of any bank, Bove said. Insurance rates on destroyed properties are expected to rise, while money generated from insurance settlements and government aid is typically deposited in local banks. “The result for the banks is they benefit by obtaining a sizable amount of low-cost deposits, which are then invested in relatively high rate loans,” Bove said. “Insurance brokerage businesses benefit because they collect the same commission rate on higher premiums.” Shares of Truist Financial are up 1.4% in premarket trades. The stock is down 23.6% in 2022 compared to a loss of 22.8% by the S&P 500 .

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