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On Thursday, Raymond (NSE:RYMD) James made a notable adjustment to the price target for F.N.B. Corporation (NYSE:FNB), reducing it from $19.00 to $15.00, while still affirming an Outperform rating for the company’s stock. Trading at a P/E ratio of 10.03x and offering a 3.92% dividend yield, the stock has seen a 16.58% decline year-to-date. According to InvestingPro analysis, the stock is currently fairly valued based on its comprehensive Fair Value model. The decision by analyst Daniel Tamayo came in the wake of F.N.B. Corporation’s first-quarter results, which were deemed solid, particularly due to a decrease in operating expenses and an increase in net interest income (NII), leading to a beat on pre-tax, pre-provision net income (PTPPI). With a market capitalization of $4.55 billion, F.N.B. has maintained dividend payments for an impressive 51 consecutive years, demonstrating consistent shareholder returns.
The company’s financial health was further evidenced by stable credit metrics, robust loan growth, and the resumption of share repurchases as capital levels saw improvement. Additionally, the company’s management has reiterated its guidance, indicating confidence in reaching the higher end of its fee income range.
Despite the positive outlook for the long term, Raymond James acknowledged the company is not shielded from short-term macroeconomic uncertainties. The firm’s estimates now incorporate a more balanced perspective on growth and credit conditions. Nevertheless, Raymond James highlights the stock’s value, noting that it trades below its peers even though F.N.B. Corporation is expected to maintain solid profitability, credit quality, and capital levels. The firm sees the current share price as an attractive entry point for investors.
In other recent news, F.N.B. Corporation reported impressive earnings results for the first quarter of 2025, with earnings per share of $0.32, surpassing the forecasted $0.30. The company also exceeded revenue expectations, achieving $411.61 million against a predicted $410.22 million. F.N.B.’s core pre-provision net revenue outperformed expectations due to strong net interest income and modest improvements in fees and operating expenses. Additionally, the company experienced a 21% reduction in loan loss provisions quarter-over-quarter, attributed to a decrease in net charge-offs.
The company’s tangible book value per share grew by 12%, and its capital position strengthened with a CET1 ratio of 10.7%. In terms of strategic initiatives, F.N.B. Corporation is expanding its digital banking capabilities and recently acquired Raptor Partners, a boutique investment banking firm. Analyst firm DA Davidson maintained a Buy rating on F.N.B. Corporation, with a price target of $19.00, following these positive financial results. Looking forward, F.N.B. Corporation projects mid-single-digit growth in loans and deposits for the full year, despite potential macroeconomic challenges.
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