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On Friday, Piper Sandler initiated coverage on FirstSun Capital Bancorp (NASDAQ:CBNK) (NASDAQ:FSUN) with an Overweight rating and a price target of $51.00, representing about 23% upside from the current price of $41.50. The research firm’s decision is based on the bank’s potential for stronger growth and its ability to gain market share in dynamic markets. According to InvestingPro data, analyst consensus remains bullish with price targets ranging from $46 to $47. Piper Sandler’s analysis also points to FirstSun’s above-average exposure to commercial and industrial (C&I) lending as a positive, correlating with expectations for the ISM index to increase.
Analysts at Piper Sandler have projected earnings per share (EPS) for FirstSun Capital at $3.54 for 2025 and $3.90 for 2026. The $51 price target is set at 11.0 times the firm’s projected 2026 earnings, which is slightly above the peer average of 10.6 times. InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with particularly strong metrics in growth and cash flow management. This valuation reflects the bank’s competitive profitability outlook, with an anticipated return on assets (ROA) between 1.20% and 1.30%.
The rating also takes into account FirstSun Capital’s excess capital, with a tangible common equity (TCE) ratio of 11.76%. The price target implies a 1.50 times multiple of the bank’s tangible book value (TBV), compared to a peer average of 1.56 times. InvestingPro Tips highlight the company’s high shareholder yield, though it currently trades above its calculated Fair Value. Subscribers can access 3 additional exclusive ProTips and comprehensive valuation metrics. Piper Sandler’s outlook for FirstSun Capital suggests a favorable position in the market, supported by the bank’s financial strengths and strategic market positioning.
Piper Sandler’s coverage initiation on FirstSun Capital comes with a comprehensive analysis of the bank’s financial metrics and market opportunities. The firm’s positive outlook is based on a blend of quantitative projections and industry trends, indicating potential for FirstSun to outperform its peers in the upcoming years. The stock has demonstrated strong momentum with an 18.6% return over the past year, while maintaining a conservative debt-to-equity ratio of 0.22.
In other recent news, FirstSun Capital Bancorp reported its fourth-quarter results for 2024, which exceeded expectations set by both Raymond (NSE:RYMD) James and the broader market consensus. The company demonstrated strong revenue growth, although it anticipates slower loan and deposit growth in the future. Following these results, Raymond James analyst Michael Rose raised the price target for FirstSun shares to $46, maintaining an Outperform rating. Despite a slight reduction in the 2026 earnings per share (EPS) estimate, the outlook for FirstSun remains positive, with the stock trading at a discount compared to its peers.
FirstSun is actively pursuing growth by submitting applications for new branches in San Diego and Los Angeles and recruiting additional lenders. In corporate governance news, Christopher C. Casciato resigned from the board of directors, effective December 19, 2024, with no disagreement cited. Casciato represented Lightyear Fund III, L.P., which retains the right to nominate a board member under certain conditions. The company has not yet announced a replacement or changes to the board’s composition. Investors are closely watching these developments, given FirstSun’s growth trajectory and strategic initiatives.
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