Raymond James boosted its price target on Fulton Financial (NASDAQ:FULT) to $23.00 from $20.00 and reiterated an Outperform rating on the regional bank. The new target implies roughly a 14% upside from the stock's then-current quote of $20.19.
The upward revision followed Fulton Financial's fourth-quarter report, which Raymond James said showed robust core trends and net interest margin (NIM) expansion that outperformed the firm's expectations. Over the last twelve months the company delivered 11.3% revenue growth, a pace Raymond James cited as evidence of operational strength.
Fulton also reported fourth-quarter 2025 earnings that beat analyst estimates on the bottom line. The company posted earnings per share of $0.55 versus a $0.49 forecast, a 12.24% surprise. Revenue for the quarter was $336.02 million, narrowly below the $336.4 million estimate. The mixed results underscore a pocket of upside in profitability alongside a slight topline shortfall.
In its review of the quarter, Raymond James highlighted stable credit metrics and improved capital levels at Fulton Financial. The bank's report noted only modest loan growth, a dynamic the firm attributed to auto loan runoff and a period of credit clean-up. Independent data from InvestingPro referenced by analysts indicates Fulton has preserved dividend payments for 44 consecutive years, a signal frequently interpreted as a sign of payout consistency.
Management commentary provided guidance on the path ahead: executives expect loan growth to re-accelerate in 2026. Raymond James notes that, together with a projected stronger net interest margin trajectory, this pickup in lending activity should largely offset pressure from a steeper expense base.
On valuation, Raymond James described Fulton shares as trading at a modest discount to peer banks, pointing to the company's combination of profitability, credit quality and capital flexibility as reasons for a constructive stance. The firm maintained its Outperform rating in light of these factors.
The fourth-quarter earnings call offered additional operational context and gave analysts fresh input for modeling. Analyst firms remain attentive to Fulton Financial's evolving performance metrics and how management's projections translate to future quarters.
Overall, the Raymond James action frames Fulton Financial as a bank with recent margin upside and consistent dividend history, tempered by subdued loan growth in the near term and expense considerations. Investors and analysts will be watching whether loan demand and margin improvements materialize as projected to validate the raised price target.