Tech, Media And Telecom Banking Will Strengthen Operational Resilience

First Citizens BancShares' analyst price target has been reduced from $2,275 to $2,186.54, as analysts cite incremental headwinds related to a recent large bankruptcy exposure and expectations for moderating profit margins.

Analyst Commentary

Recent analyst updates regarding First Citizens BancShares present a mixed outlook, highlighting both the company’s competitive strengths and several areas of concern that may affect its future valuation and growth prospects.

Bullish Takeaways

• Bullish analysts have raised valuation targets based on strong excess capital and favorable rate positioning, which they believe may drive long-term shareholder value.
• Expectations for continued loan and deposit growth, as well as the potential for increasing net interest margins, were highlighted as positive trends supportive of fundamental performance.
• The bank’s capital strength and disciplined execution are viewed as supportive factors for its elevated price targets and robust financial outlook.
• Some analysts are maintaining Buy or Overweight ratings, confident in First Citizens’ ability to navigate the evolving interest rate landscape and drive future earnings growth.

Bearish Takeaways

• Bearish analysts have reduced price targets, pointing to incremental headwinds from a recent bankruptcy exposure, specifically an $84 million unsecured claim, which could weigh on near-term financial performance.
• Expectations of moderating profit margins are being driven by a projected rate environment that includes multiple rate cuts, introducing approximately a 20 basis point headwind to net interest margins over the coming year.
• There have been downgrades in ratings, with concerns over reduced earnings visibility and heightened uncertainty around asset quality following recent events in the sector.
• Some analysts are trimming forward-looking earnings estimates for fiscal years 2025 and 2026, reflecting caution about both loan performance and broader macroeconomic risks.

What's in the News

• From April 1, 2025 to July 31, 2025, First Citizens BancShares repurchased 486,324 shares, representing 3.63 percent, for $916.12 million. With this, the company has completed the repurchase of 1,603,648 shares, representing 11.52 percent, for $3,192.12 million under the buyback announced on July 25, 2024. (Key Developments)
• First Citizens BancShares, Inc. announced a share repurchase program allowing the company to buy back up to $4,000 million worth of its Class A Common Stock. The program is set to expire in 2026. (Key Developments)
• The Board of Directors of First Citizens BancShares authorized a new buyback plan on July 25, 2025. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target has declined from $2,275 to $2,186.54, reflecting a modest decrease in fair value estimation.
• Discount Rate has increased slightly from 8.64% to 8.68%, signaling a marginally higher required rate of return for investors.
• Revenue Growth projections have risen from 1.68% to 2.32%, suggesting analysts now expect somewhat stronger top-line expansion.
• Net Profit Margin has edged lower from 22.88% to 22.51%, pointing to expectations of slightly compressed profitability ahead.
• Future P/E has dropped from 13.50x to 12.96x, indicating that shares are now valued a bit less richly on a forward earnings basis.