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First Citizens BancShares Is Ready To Beat Current Street Expectations, Says Bullish Analyst

Published 21/03/2024, 17:54
© Reuters.  First Citizens BancShares Is Ready To Beat Current Street Expectations, Says Bullish Analyst
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Benzinga - by Priya Nigam, Benzinga Staff Writer.

First Citizens BancShares Inc’s (NASDAQ: FCNCA) stock has a history of outperforming the market.

The bank appears well positioned to generate low-to-mid teens returns, driven by above-peer loan growth and cost controls, according to Goldman Sachs.

The First Citizens BancShares Analyst: Ryan Nash initiated coverage of First Citizens BancShares with a Buy and a price target of $1,950.

The First Citizens BancShares Thesis: The bank’s peer-leading loan growth will help drive better net interest income growth, especially in the higher-for-longer rate scenario, Nash said in the initiation note.

Check out other analyst stock ratings.

“Additionally, given its peer leading capital levels, it should be well positioned to return >20% of its market cap to shareholders (via a buyback) in the coming quarters,” the analyst wrote.

First Citizens BancShares has the capacity to return between $4.2 billion and $6.5 billion in share buybacks by yearend 2025, higher than the current consensus expectations of $4.1 billion, provided “it holds Tier 1 leverage of at least 8-9%,” Nash added.

The bank is poised for loan growth in mid-single digits and there is some upside to net interest income expectations, Nash stated. “While credit losses are elevated today given several high-risk portfolios, reserves appear adequate and we see the potential for losses to improve over time,” he wrote.

FCNCA Price Action: Shares of First Citizens BancShares had risen by 1.02% to $1,597 at the time of publication on Thursday.

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Photo: Shutterstock

Latest Ratings for FCNCA

DateFirmActionFromTo
Feb 2022Piper SandlerInitiates Coverage OnOverweight
Aug 2021Janney Montgomery ScottInitiates Coverage OnBuy
Feb 2021DA DavidsonInitiates Coverage OnBuy
View More Analyst Ratings for FCNCA

View the Latest Analyst Ratings

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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