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On Wednesday, Stephens analyst Russell Gunther revised the price target for FB Financial (NYSE:FBK), reducing it to $58.00 from the previous $65.00. Despite the decrease, the firm continues to hold an Overweight rating on the stock. According to InvestingPro data, the stock currently trades below its Fair Value, with analyst targets ranging from $58 to $65, suggesting potential upside. Four analysts have recently revised their earnings estimates upward for the upcoming period. Gunther’s assessment supports the company’s strategy of capital deployment through its upcoming acquisition of SSBK. The transaction aligns with FB Financial’s stated goals in terms of asset size, geographic presence, and financial benchmarks.
The deal is valued at 1.57 times tangible book value (TBV) and 9.0 times the 2026 consensus earnings estimate, or 7.1 times when factoring in cost savings. Gunther highlighted that the merger should bolster FB Financial’s return profile compared to its peers, with a projected return on assets (ROA) of approximately 1.4%, a return on tangible common equity (ROTCE) of around 15%, and an efficiency ratio near 50%.
Pro forma tangible common equity (TCE) is anticipated to be 9.9% with a common equity tier 1 (CET-1) ratio of 12.2%. This strong capital position is expected to enable quick accretion and provide the flexibility for further mergers and acquisitions or adjustments to the legacy securities portfolio. The analyst noted FB Financial’s commercial real estate (CRE) and construction and development (C&D) concentrations at 239% and 65%, respectively, as indicators of the company’s capacity for continued strategic maneuvers.
In light of current economic uncertainties, FB Financial has reaffirmed its forecast for organic growth rates that surpass its peers, targeting the high single digits to low double digits. Additionally, Stephens raised its 2026 earnings estimate to $4.40, marking a 12.8% increase, and reiterated its Overweight rating on the shares. The company has shown impressive dividend growth of 26.67% and maintained strong returns over the past five years. For deeper insights into FB Financial’s growth potential and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, FB Financial Corporation reported fourth-quarter earnings that surpassed analyst expectations, with adjusted earnings per share reaching $0.85, slightly above the consensus estimate of $0.84. Revenue for the quarter was $130.38 million, just shy of the anticipated $131.14 million. The company saw an increase in net interest income to $108.4 million, up from $106 million in the previous quarter. In a strategic move, FB Financial announced a merger with Southern States Bancshares, expected to close by late 2025, which will enhance its market presence in key areas. Shareholders of Southern States will receive 0.800 shares of FB Financial common stock for each share held, valuing the deal at approximately $381 million.
Additionally, FB Financial increased its quarterly cash dividend by 12% to $0.19 per share, reflecting its commitment to delivering value to shareholders. Analysts at Piper Sandler upgraded FB Financial’s stock rating to Overweight, citing the current stock price as an appealing opportunity and projecting low-double-digit growth. Keefe, Bruyette & Woods maintained a Market Perform rating on FB Financial, noting the strategic acquisition of Southern States as a boost to its presence in Alabama and Georgia. These developments highlight FB Financial’s ongoing efforts to expand its footprint and enhance shareholder value.
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