M&T Bank (MTB) surprises holders — Can 2023 banking trends push prices to $200?

• M&t Bank announced its earnings; surprises holders.
• The 2023 banking trends seem exciting.
• Fed rates may pose a problem.

M&T Bank Corp (NYSE: MTB) stock price soared 5.5% after the bank announced its financial reports for the fourth quarter of FY 2022-23. Per the reports, the company surpassed its expectations. It reported Q4 EPS at $4.29, exceeding the analysts’ estimate of $4.20 by $0.09. Revenue stood at $2.52 billion higher than the estimated $2.37 billion.

Break a leg

The banking industry is in much better shape than it was during the financial crisis of 2008.

A combination of economic trends and recent developments is molding banking services. Now that the positive rates have returned, the constellation of banking products is drifting into a more familiar and predictable orbit.

Rising rates may encourage and fuel banking product innovation. Another bash, just as mobile did, the metaverse is opening a new world of possibilities.

Other things that might be contributing are treating data as a product and a mindset shift that has the potential to transform the foundation of banking; and banking to address and resolve the climate crisis. As big techs and super-apps expand, banks may look beyond customer tracks to address customers’ holistic well-being.

Banking as a Service (BaaS) acts as an alternative to traditional banks, as not everyone can open a bank due to tight regulations. BaaS platforms enable fintech and other third parties to connect with banks’ systems via APIs to build banking offerings over the providers’ regulated infrastructure.

A hurdle that can be seen in the coming few days are unfavorable hikes in the Federal Funds Rate, the Federal Reserve’s (Fed) number 1 tool to combat inflation. Fed chair Jerome Powell warned that rate hikes will be used generously to beat inflation. Former Fed presidents believe the rate will rise by a quarter percentage in Fed’s Jan 31- Feb 1 meeting.

The MTB stock price, after following the theorem of rising parallel channel, witnessed a bullish breakout, due to the launch of its financial reports. The volume also reflects buyers swamping the market. The 20-day EMA was successfully claimed while surging to $153.81, at press time. Respecting the previous swing, the price rally may shoot up to $200, marking a new all-time high. 

The RSI shoots up to reach higher ranges as the buyers take over the market. It currently floats within the bounds of 50-60. The MACD lines diverge for the bulls and records ascending buyer histograms, simultaneously. The stock price can have a prolonged rally as the financial reports and trends may have a lasting impact.

Conclusion

The journey to metamorphose from a traditional to a modern system won’t be without risks – but banks were invented to manage risks, right? 2023 might be the watershed moment marking the start of core modernization in the banking sector. If MTB takes the early bird advantage, it may gain the upper hand. MTB holders can trust the support level of $145.86 to buy the stock.

Technical levels

Support levels: $145.86 and $139.72

Resistance levels: $162.30 and $170.65

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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