BofA update shows where active managers are putting money
Investing.com - Keefe, Bruyette & Woods raised its price target on F.N.B. Corporation (NYSE:FNB) to $18.50 from $16.50 on Monday, while maintaining an Outperform rating on the stock.
The price target increase follows what the research firm described as a "nice beat" in F.N.B.’s quarterly earnings, which exceeded KBW’s estimates by $0.02 per share on pre-provision net revenue (PPNR) and overall performance. InvestingPro data shows three analysts have recently revised their earnings estimates upward, with the company maintaining its 51-year streak of consistent dividend payments.
KBW highlighted F.N.B.’s significant net interest margin improvement of 16 basis points quarter-over-quarter and a record quarter for fee income, which together drove PPNR 17% higher compared to the previous quarter.
Following these strong results, F.N.B. management raised its net interest income guidance, prompting KBW to modestly increase its own estimates by 1-2%, primarily due to upward revisions to spread income.
KBW expressed greater confidence in F.N.B.’s outlook given the higher starting point for margin, noting there could be "additional room for upside with continued execution" after what it called "an all-around solid quarter."
In other recent news, F.N.B. Corporation has seen a series of positive developments. Raymond (NSE:RYMD) James increased its price target for F.N.B. Corporation to $18.00 from $15.00, maintaining an Outperform rating, following the bank’s strong second-quarter results. These results showcased improved net interest margin and net interest income, alongside better-than-expected fee revenues and enhanced asset quality. Additionally, F.N.B. raised its 2025 net interest income guidance, which Raymond James suggests might be conservative if commercial loan growth accelerates as anticipated.
DA Davidson reiterated a Buy rating with a $17.00 price target, noting F.N.B.’s robust net interest income growth of 7% quarter-over-quarter and solid loan and deposit growth. The bank’s net interest margin expanded by 16 basis points, with tangible common equity increasing to 8.5%. Despite higher net charge-offs, credit costs were in line with expectations, and non-performing loans decreased. F.N.B. Corporation’s stock has outperformed the KRX Index year-to-date.
On a separate note, FMB Corporation reported its Q2 2025 earnings, exceeding Wall Street expectations with an EPS of $0.36 and revenue of $438.21 million. The company achieved record levels of net interest and non-interest income, with a return on average tangible common equity of 14%. FMB projects mid-single-digit growth in loans and deposits for the remainder of the year, with full-year net interest income guidance set between $1.37 and $1.39 billion.
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