-- 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.