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Investing.com - Piper Sandler downgraded First Citizens BancShares (NASDAQ:FCNCA), a $27.5 billion market cap bank, from Overweight to Neutral on Monday, while maintaining its $2,150.00 price target. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value model, despite trading at a P/E ratio of 12.35.
The downgrade follows First Citizens’ second-quarter earnings report, which showed solid pre-provision net revenue but featured downward revisions to the bank’s full-year 2025 guidance. Interestingly, seven analysts have recently revised their earnings estimates upward for the upcoming period, according to InvestingPro data. Piper Sandler noted that loan and deposit growth was more muted in the second quarter of 2025.
First Citizens reported 2% sequential growth in net interest income, with net interest margin holding steady at 3.26%. The bank has revised its full-year loan guidance to $143 billion-$146 billion and deposit guidance to $161 billion-$166 billion, signaling a more cautious outlook.
Net charge-offs reached their lowest level since the second quarter of 2024, though Piper Sandler highlighted ongoing sector-specific headwinds, particularly in commercial real estate.
The research firm acknowledged First Citizens’ diversified business model and strong capital position but concluded that the current valuation already captures near-term growth potential. First Citizens shares have risen over 21% since early March 2025.
In other recent news, First Citizens BancShares Inc reported strong financial results for the second quarter of 2025. The company achieved earnings per share of $44.78, surpassing the projected $39.29. Additionally, revenue reached $2.38 billion, exceeding the anticipated $2.18 billion. These results indicate a robust performance for the quarter. The company did not announce any mergers or acquisitions during this period. Analyst firms have not reported any upgrades or downgrades for First Citizens BancShares Inc following the earnings release. These developments highlight the company’s financial health and operational success. Investors will likely find these results encouraging as they assess the company’s future prospects.
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