DA Davidson keeps BancFirst stock at Neutral, $120 target

Published 22/04/2025, 17:00
DA Davidson keeps BancFirst stock at Neutral, $120 target

Tuesday, BancFirst Corporation (NASDAQ:BANF), a $3.8 billion market cap regional bank with a "GREAT" InvestingPro Financial Health score, maintained its Neutral rating and $120.00 price target from DA Davidson, following the company’s recent earnings report. The firm’s commentary highlighted BancFirst’s solid quarterly performance, which exceeded expectations in terms of spread income due to a stable net interest margin (NIM) and quarter-over-quarter growth in earning assets.

The analysis from DA Davidson noted that BancFirst’s core expenses came in under projections, suggesting effective cost control that is expected to continue throughout the rest of 2025. This financial discipline, combined with the bank’s impressive 27-year streak of dividend increases and 7.4% revenue growth, is seen as a positive sign for the bank’s operational management going forward.

In terms of asset quality, BancFirst demonstrated stability with low net charge-offs (NCOs) and unchanged nonperforming asset (NPA) levels from the previous quarter. These indicators, along with the company’s conservative debt-to-equity ratio of 0.06 and strong return on equity of 14%, reflect solid risk management capabilities.

The firm’s evaluation of BancFirst’s earnings and financial metrics indicates a steady performance by the bank, with no immediate concerns that would necessitate a change in the stock’s rating or price target at this time. The reiteration of the Neutral rating suggests that DA Davidson views the stock as fairly valued given the current financial results and market conditions.

Investors and market watchers will likely continue to monitor BancFirst’s financial performance and any potential changes in the banking sector that could influence the stock’s valuation in the future.

In other recent news, BancFirst Corporation reported first-quarter 2025 earnings that surpassed analyst expectations. The company achieved earnings per share of $1.67, exceeding the consensus estimate of $1.58. Additionally, BancFirst’s revenue reached $164.84 million, surpassing the anticipated $161.71 million. Net income increased to $56.1 million, up from $50.3 million in the same quarter the previous year. The bank’s net interest income rose to $115.9 million, driven by higher loan volume and growth in earning assets. Noninterest income also saw an increase, totaling $49.0 million, with gains in trust revenue, treasury income, sweep fees, and insurance commissions. The company’s total assets grew to $14.0 billion by the end of March 2025, marking an increase of $483.7 million from the end of 2024. Loans expanded by $69.6 million to $8.1 billion, while deposits rose by $408.2 million to $12.1 billion. These recent developments reflect BancFirst’s continued strong performance despite market volatility.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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