Bank stocks plunged yesterday as investors ditched anything with exposure to cyclical growth trends in the U.S., but that has not stopped First Citizens Bank (FCNCA) from finding some analyst love amid the turmoil.
Piper Sandler upgraded Raleigh, North Carolina-based First Citizens BancShares to Overweight from Neutral, effectively from Hold to Buy, with an unchanged price target of $2,250. Calling the recent fall in the stock “excessive,” the firm believes current levels represent a “compelling” opportunity for investors.
FCNCA, perhaps best known for stepping forward to purchase failed lender Silicon Valley Bank in 2023, dropped over 7% on Monday as banking shares were slapped hard by recession fears. Wells Fargo (WFC) declined 6% while JPMorgan (JPM), Citigroup (C) and Bank of America (BAC) all dropped in the region of 4%.
FCNCA Trails Peers
The KBW Nasdaq Bank Index is down over 7% this year, with selling pressure intensifying on Monday amid a broad pullback for risk assets in the U.S. on mounting fears of a recession. But FCNCA has underperformed peers considerably in that time, declining 18% YTD.
Piper Sandler says overall the selling on Wall Street “seems overblown in general,” and the underperformance of FCNCA presents “significant upside” relative to the price target. Five-star analyst Stephen Scouten also suggested the bank could repurchase an additional $6 billion worth of shares through the end of 2026.
Is FCNCA a Good Stock to Buy?
With the stock down heavily this year the average price target of $2,462.75 suggests considerable upside potential from current levels. The consensus rating for FCNCA is a Moderate Buy, based on three Buys, five Holds and no Sells. The upgrade may take a while to be reflected in the TipRanks tool below.
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