DA Davidson maintains FNB stock Buy rating, $19 target

On Thursday, DA Davidson reaffirmed its positive stance on F.N.B. Corporation (NYSE:FNB), maintaining a Buy rating and a price target of $19.00. According to InvestingPro data, analysts’ consensus remains bullish, with price targets ranging from $16 to $19, suggesting significant upside potential from the current price of $12.70. The stock currently trades at an attractive P/E ratio of 10x, and analysis indicates it may be undervalued. The endorsement followed F.N.B. Corporation’s latest financial results, which showed robust growth in loans by 4% and deposits by 1%. The company also reported a slight increase in net interest income (NII) by 0.5%, despite a nearly flat net interest margin (NIM), which decreased by 1 basis point. Notably, InvestingPro research reveals the company has maintained dividend payments for an impressive 51 consecutive years, with a current dividend yield of 3.92%.

The financial institution’s core pre-provision net revenue (PPNR) outperformed expectations due to the stronger NII, alongside modest improvements in fees and operating expenses. F.N.B. Corporation also experienced a 21% quarter-over-quarter reduction in loan loss provisions, attributed to a decrease in net charge-offs (NCOs) to 15 basis points, down from 24 basis points in the fourth quarter of 2024. Nonperforming assets (NPAs) remained stable at 48 basis points, allowing the reserve levels to stay constant at 1.25%.

The company’s capital position strengthened, with tangible common equity (TCE) rising by 20 basis points quarter-over-quarter to 8.4%. Additionally, tangible book value per share (TBV/Sh) grew by 3.3% quarter-over-quarter and 12.4% year-over-year. Despite these positive developments, F.N.B. Corporation’s shares have seen a 2% decline compared to the KBW Regional Banking Index (KRX) year-to-date.

Looking ahead, F.N.B. Corporation’s second-quarter 2025 pre-provision net revenue outlook is expected to challenge the consensus estimates. Market participants are anticipated to seek further details during the 8:30 AM conference call, particularly regarding the unchanged PPNR outlook and guidance within the provided ranges. With a market capitalization of $4.58 billion and several additional key metrics available on InvestingPro, including exclusive ProTips and comprehensive financial health scores, investors can access deeper insights into F.N.B. Corporation’s performance and prospects through the platform’s detailed Pro Research Report.

In other recent news, F.N.B. Corp reported its first-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.32, compared to the forecasted $0.30. The company’s revenue also exceeded predictions, coming in at $411.61 million against the expected $410.22 million. F.N.B. Corp has been active in strategic initiatives, such as expanding its digital banking capabilities and acquiring Raptor Partners, a boutique investment banking firm. Analysts from various firms have noted these developments, although no specific upgrades or downgrades were mentioned. The company has projected mid-single-digit growth in loans and deposits for the full year, despite macroeconomic uncertainties. F.N.B. Corp’s strong risk management and diversified revenue streams have been highlighted as key factors in its robust performance. Additionally, the company has introduced new digital banking features, including automated direct deposit switch capabilities, to enhance customer experience. These recent developments reflect F.N.B. Corp’s strategic focus and operational efficiency.

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