Research Alert: CFRA Lowers View On Shares Of First Citizens Bancshares To Hold From Buy
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We reduce our 12-month target price by $500 to $2,200, 10.8x our 2027 EPS estimate, in line with FCNC.A's five-year average multiple of 10.9x. We reduce our 2026 EPS view to $182.55 from $193.68 and 2027's to $203.49 from $212.43. Our reduced outlook reflects lower net interest income expectations. Following its 2023 acquisition of Silicon Valley Bank, FCNC.A transformed from a bank with a healthy net interest margin to one with a best-in-class margin. However, this margin has gradually eroded. In Q1, FCNC.A's net interest margin compressed 11 bps sequentially to 3.09% due to intensified deposit competition. Going forward, we expect the net interest margin to stabilize, though at a level that is now comparable to peers rather than superior. On a positive note, credit quality concerns are easing, as net charge-offs have declined for two consecutive quarters. Management has painted an optimistic picture for 2026, lowering its full-year net charge-off guidance by 5 bps to a range of 30-40 bps.
