Gold prices hold near record highs ahead of Fed rate decision
Investing.com - DA Davidson raised its price target on First Interstate Bancsystems (NASDAQ:FIBK) to $38.00 from $35.00 on Friday, while maintaining a Buy rating on the stock. The bank, currently trading at $32.48 with a 5.79% dividend yield, has maintained dividend payments for 16 consecutive years according to InvestingPro data.
The price target increase follows DA Davidson’s recent non-deal roadshow with First Interstate Bancsystems’ management team in New York and Boston.
DA Davidson noted that investor sentiment toward First Interstate has shifted from a defensive stance on credit and capital to a more constructive focus on growth path and capital deployment options.
The firm views this shift as evidence that the current CEO’s initial efforts have been successful and that a pivot toward offense and multiple expansion is underway.
DA Davidson’s new $38 price target represents approximately 1.75 times current tangible book value, reflecting the firm’s increased confidence in its Buy thesis and a clearer path toward a 2.0x tangible book value multiple. For deeper insights into FIBK’s valuation and 12+ additional ProTips, visit InvestingPro.
In other recent news, First Interstate BancSystem has made several notable announcements. The company authorized a $150 million stock repurchase program, allowing it to buy back shares through March 31, 2027, which may be executed via open market purchases or private transactions. Following this announcement, Keefe, Bruyette & Woods reiterated an Outperform rating for First Interstate BancSystem, highlighting the potential positive impact of the buyback plan. In addition, the company completed the redemption of its 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030, fulfilling its obligations under the original indenture agreement.
The board of directors has also seen changes, with the appointment of Renu Agrawal as a Class III director, whose term will expire in 2027. Agrawal brings experience from her previous roles at Wells Fargo and other organizations. Moreover, Michael L. Scudder has been appointed as a Class I director, with his term set to expire in 2028. Scudder’s extensive background includes leadership roles at Old National Bancorp and First Midwest Bancorp. These developments reflect First Interstate BancSystem’s ongoing strategic initiatives and leadership enhancements.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.