First Bancorp stock price target raised to $62 from $53 at KBW

Investing.com - Keefe, Bruyette & Woods (KBW) raised its price target on First Bancorp (NASDAQ:FBNC) to $62.00 from $53.00 on Tuesday, while maintaining an Outperform rating on the stock.

The price target increase follows a 16.4% rise in First Bancorp shares since the company reported earnings in July, which pushed the stock above KBW’s previous target.

The new $62 price target represents 15.1 times KBW’s 2026 earnings estimate and 2.07 times year-out tangible book value for the banking company.

KBW expects First Bancorp’s profitability to improve in both flat interest rate and declining rate scenarios, citing fixed asset repricing and excess capital deployment as key factors.

The research firm also noted the potential for multiple expansion for First Bancorp given what it describes as "increased scarcity value" following the merger of equals between Pinnacle Financial Partners and Synovus Financial.

In other recent news, First Bancorp’s earnings have shown notable performance, with core pre-provision net revenue reaching $52.3 million, surpassing consensus estimates. This strong result was attributed to increased net interest income, higher fees, and reduced expenses. Following these earnings, Stephens raised its price target for First Bancorp to $57, maintaining an Overweight rating. Similarly, Keefe, Bruyette & Woods (KBW) increased its price target to $53, citing better-than-expected operating results and an improved net interest margin.

Additionally, First Bancorp announced an increase in its quarterly dividend to $0.23 per share, payable on July 25, 2025. Analyst firm KBW projects First Bancorp to achieve significant organic growth rates of 5-6% in 2025, with expectations for even higher growth in 2026. In leadership news, First Bank, a subsidiary of First Bancorp, appointed Larry Jackson as the new Chief Credit Officer. Jackson brings over two decades of experience in credit risk management, previously serving as Market Credit Executive at PNC.

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