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FRST: Improving Credit Quality And Margin Outlook Will Support Stronger Earnings

Digital Banking Expansion And Panacea Focus Will Create Future Value

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FRST
AnalystConsensusTarget
Not Invested
Published 24 Sep 2024

Update shared on 14 Dec 2025

Fair value Increased 11%
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AnalystConsensusTarget's Fair Value
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1Y
14.3%
7D
5.8%

Analysts have raised their price target on Primis Financial from 13.63 dollars to 15.13 dollars, citing improving revenue growth expectations, a modestly lower discount rate, and a more normalized profit margin outlook that supports a higher future earnings multiple.

What's in the News

  • Completed repurchase of 79,549 shares, representing approximately 0.32% of shares outstanding, for a total of 0.8 million dollars under the buyback program announced on December 19, 2024 (Key Developments)
  • Reported third quarter 2025 net charge offs of 1.17 million dollars, significantly lower than 7.95 million dollars in the prior year period, indicating improved credit quality trends (Key Developments)

Valuation Changes

  • The fair value estimate has risen moderately from 13.63 dollars to 15.13 dollars per share, reflecting a higher intrinsic value assessment.
  • The discount rate has declined slightly from 8.26 percent to approximately 8.19 percent, modestly increasing the present value of projected cash flows.
  • The revenue growth outlook has shifted from a modest decline of about 3.7 percent to expected positive growth of roughly 0.5 percent, indicating a more constructive top line trajectory.
  • The net profit margin assumption has been reduced substantially from about 104.9 percent to roughly 38.4 percent, implying a more normalized and sustainable profitability profile.
  • The future P/E multiple has increased significantly from about 3.5 times to roughly 8.5 times, supporting a higher valuation on anticipated earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.