A Look at First BanCorp (NYSE:FBP) Valuation Following Strong Q3 Results and $200M Buyback Announcement

First BanCorp (NYSE:FBP) reported strong third quarter results, with net income and earnings per share both increasing compared to last year’s period. The company also recently launched a $200 million share buyback initiative.

See our latest analysis for First BanCorp.

First BanCorp’s recent share price momentum has been shaped by strong quarterly earnings and a new $200 million buyback program, with the stock still up 10.8% year-to-date. The longer view highlights consistent value creation, shown by a 269% total shareholder return over five years and 11.5% total return for the past twelve months. This suggests that management’s focus on growth and capital returns continues to resonate with investors.

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With the stock trading near its highs and analysts projecting further upside, investors face a key question: Is First BanCorp still undervalued after recent gains, or is the future already fully reflected in the current price?

Most Popular Narrative: 18.6% Undervalued

First BanCorp’s most widely followed valuation narrative pegs its fair value at $25, considerably higher than the last close at $20.35. The narrative paints a bullish vision justified by specific catalysts on both the growth and risk fronts, and sets up intriguing expectations for the coming years.

The bank's aggressive and sustained investment in digital platforms, evidenced by multi-year growth in active digital users and streamlined operations, positions it to capture cost efficiencies and improve net margins as customers shift toward digital channels. Favorable labor market conditions and improving consumer health are reducing credit losses, as seen in lower net charge-offs and stable or improving asset quality metrics. This could support more stable and higher earnings in the future.

Read the complete narrative.

Want to see what bold projections are powering this above-market price tag? There’s a clash brewing between margin expectations and shrinking share count. The twists inside this narrative could surprise even seasoned bank investors. Dive in for the revenue and earnings story that underpins it all.

Result: Fair Value of $25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent demographic challenges in Puerto Rico or intensified competition for deposits could quickly pressure growth and raise questions about optimistic projections.

Find out about the key risks to this First BanCorp narrative.

Build Your Own First BanCorp Narrative

If you see the story differently or want to dig into the numbers on your own, you can build a complete narrative in just a few minutes. Do it your way.

A great starting point for your First BanCorp research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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