RBC Capital cuts First Financial Bancorp target to $27 from $30

On Monday, RBC Capital Markets adjusted its outlook on First Financial Bancorp (NASDAQ:FFBC) shares, reducing the price target from the previous $30.00 to $27.00. The firm kept its Sector Perform rating on the stock. Currently trading at $22.93, the bank’s shares have declined significantly over the past three months, though InvestingPro data shows the stock remains profitable with a P/E ratio of 9.96x. The adjustment follows the recap of First Financial Bancorp ’s first-quarter results, which were described as satisfactory by the RBC Capital analyst, despite some moderation and seasonal influences.

The analyst noted the consistent outlook for the company, highlighting the active pipeline, near-term margin expectations, and the bank’s strategic approach to deposit pricing. This approach is seen as a way to mitigate the impact of potential future rate decreases. According to InvestingPro, First Financial (NYSE:SSB) has maintained dividend payments for 43 consecutive years, currently offering a 4.19% yield, demonstrating its commitment to shareholder returns. The revised estimates and price target are reflective of the company’s performance during the quarter.

First Financial Bancorp’s first-quarter performance was characterized by expected fluctuations and seasonal trends. With a market capitalization of $2.2 billion, the company’s focus on key business aspects, such as deposit pricing, has been recognized as a proactive measure to lessen the effect of any upcoming rate reductions. For deeper insights into First Financial’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks.

The consistency in the bank’s outlook and the activities in the pipeline were also underscored as positive elements. These factors contribute to the bank’s near-term financial prospects and are instrumental in RBC Capital’s analysis.

The new price target of $27.00 set by RBC Capital takes into account the outcomes of the most recent quarter. The Sector Perform rating suggests that the analyst believes First Financial Bancorp’s stock will perform in line with the expectations for the sector in the near future.

In other recent news, First Financial Bancorp reported its first-quarter earnings for 2025, showing steady performance amidst some financial challenges. The company met analysts’ expectations with an adjusted earnings per share of $0.63 but fell short on revenue, reporting $200.38 million against a forecast of $214.8 million. This revenue shortfall, approximately 6.7% below expectations, contrasts with the company’s history of meeting or exceeding forecasts, sparking concerns about future growth. Despite this, First Financial Bancorp managed a 3.3% decline in non-interest expenses, demonstrating effective cost management. The company revised its full-year loan growth expectations to 4-5%, down from the previous 6-7%, and anticipates interest rate cuts in June, September, and December. Analysts from firms such as KBW and RBC Capital Markets have noted the company’s resilience in managing its balance sheet, though they remain cautious about ongoing market uncertainties. Additionally, First Financial Bancorp is engaged in ongoing M&A discussions, though current uncertainties may slow the process. The company continues to focus on maintaining strong capital levels and improving asset quality, while also staying close to its clients to navigate potential impacts from tariffs.

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