DA Davidson reiterates Buy rating on F.N.B. Corporation stock

Published 18/07/2025, 15:28
DA Davidson reiterates Buy rating on F.N.B. Corporation stock

Investing.com - DA Davidson has reiterated a Buy rating with a $17.00 price target on F.N.B. Corporation (NYSE:FNB), citing strong quarterly performance metrics. According to InvestingPro data, the $5.68 billion market cap bank currently trades at a P/E ratio of 12.46, with analysis suggesting the stock is undervalued relative to its Fair Value.

The financial institution reported robust net interest income growth of 7% quarter-over-quarter, alongside improved fees that offset higher operating expenses. F.N.B. Corporation demonstrated solid loan growth of 5% and deposit growth of 5% compared to the previous quarter. The bank maintains a steady 3.02% dividend yield and has consistently paid dividends for 51 consecutive years, as highlighted by InvestingPro.

The bank’s net interest margin expanded by 16 basis points, which DA Davidson noted was surprising. Capital metrics continued to strengthen with tangible common equity increasing by 10 basis points quarter-over-quarter to 8.5%, while tangible book value per share grew 3% from the previous quarter and 13% year-over-year.

Credit costs aligned with expectations, though net charge-offs were modestly higher by 10 basis points quarter-over-quarter. Non-performing loans decreased by 14 basis points, and problem loans declined by 13 basis points during the same period.

F.N.B. Corporation stock has outperformed the KRX Index year-to-date by 5% and has gained 9% prior to the date of the analyst report, with DA Davidson suggesting recent momentum is likely to continue. For deeper insights into FNB’s valuation and growth prospects, including 8 additional ProTips and comprehensive financial analysis, visit InvestingPro, where you’ll find the detailed Pro Research Report covering what really matters about this financial institution.

In other recent news, FMB Corporation reported its second-quarter 2025 financial results, outperforming Wall Street expectations. The company achieved an earnings per share (EPS) of $0.36, surpassing the forecast of $0.34, while revenue reached $438.21 million, exceeding the anticipated $425.41 million. This performance was driven by record net interest income of $347 million and non-interest income of $91 million. Analysts from firms like Raymond (NSE:RYMD) James noted the strong financial results, which reflect FMB Corporation’s strategic focus on organic growth and technological investments. Additionally, the company has set a full-year net interest income guidance of $1.37 to $1.39 billion, with expected non-interest income ranging between $355 and $365 million. FMB Corporation continues to emphasize its strategy of growing through organic means rather than mergers and acquisitions, highlighting ongoing investments in technology and artificial intelligence. The company’s leadership expressed optimism about future growth prospects, with a focus on expanding commercial loans and reducing commercial real estate exposure.

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