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On Monday, Keefe, Bruyette & Woods analysts have upgraded F.N.B. Corporation (NYSE:FNB) stock rating from Market Perform to Outperform, maintaining a price target of $16.50. The financial institution’s shares have experienced a decline of 15% year-to-date, which aligns with the broader KRX index’s 14% drop. F.N.B. Corporation’s performance in the second half of 2024 also lagged behind the KRX, with a difference of 1,400 basis points, as F.N.B. achieved an 8% gain compared to the KRX’s 22%.
The upgrade comes despite the stock’s underperformance relative to the market. Analysts noted that F.N.B. Corporation’s shares are currently trading at 1.16 times tangible book value (TBV) and 7.4 times their 2026 earnings estimate. This valuation represents a 10% discount on price-to-tangible book value (P/TBV) and an 18% discount on price-to-earnings (P/E) compared to the KRX. InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, with analyst targets ranging from $15 to $19.
Analysts at Keefe, Bruyette & Woods highlighted F.N.B. Corporation’s robust return on tangible common equity (ROTCE), which is projected to be 14% in their 2026 estimates, outpacing the KRX by 50 basis points. The positive outlook is further supported by the company’s potential for growth through market share gains, a record level of capital, and a diversified loan book that is expected to provide resilience in the face of potential market uncertainties.
Keefe, Bruyette & Woods underscored the limited downside risk for F.N.B. Corporation’s stock, as the current price-to-tangible book value is near the trough levels seen during the 2023 crisis. This assessment suggests that the risk/reward balance for investors is now skewed favorably, prompting the firm’s decision to upgrade the stock to Outperform. The price target remains unchanged at $16.50, indicating confidence in the stock’s value proposition.
In other recent news, F.N.B. Corporation reported stronger-than-expected earnings for the first quarter of 2025, with earnings per share at $0.32, surpassing the forecasted $0.30. The company also exceeded revenue expectations, reporting $411.61 million against a predicted $410.22 million. Additionally, DA Davidson maintained its Buy rating on F.N.B. Corporation with a price target of $19.00, citing robust growth in loans and deposits, alongside a slight increase in net interest income. Meanwhile, Raymond (NSE:RYMD) James adjusted its price target for F.N.B. Corporation, lowering it from $19.00 to $15.00, but maintained an Outperform rating due to solid first-quarter results, including a decrease in operating expenses and an increase in net interest income.
F.N.B. Corporation’s financial health was further evidenced by stable credit metrics, robust loan growth, and the resumption of share repurchases. The company’s capital position strengthened, with tangible common equity rising and tangible book value per share growing by 12.4% year-over-year. Despite macroeconomic uncertainties, F.N.B. Corporation remains confident in reaching the higher end of its fee income range and anticipates mid-single-digit growth in loans and deposits for the full year. Strategic initiatives include expanding digital banking and acquiring Raptor Partners, which are expected to enhance the company’s capabilities. Analysts from both Raymond James and DA Davidson noted the company’s solid profitability and attractive stock value relative to peers.
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