Stephens cuts FIBK stock price target to $38, keeps overweight rating

Despite net interest income (NII) guidance falling slightly below Stephens’ initial expectations, there is a belief that the forecast could prove to be conservative. Stephens projects an 8.2% year-over-year increase in NII, compared to the company’s guidance of 5%-7%. In response to these factors, Stephens has revised its 2026 operating EPS estimate for First Interstate (NASDAQ:FIBK) Bancsystems to $2.94 from $3.01, alongside the reduced price target.The Overweight rating reflects Stephens’ positive outlook on First Interstate Bancsystems’ stock, indicating an expectation of the stock’s market performance to outperform the sector average over the next 12 to 18 months. The new price target of $38 suggests a potential upside from the current trading price, based on Stephens’ analysis. InvestingPro research reveals additional insights about the company’s valuation and financial health, with multiple ProTips available for subscribers. Get access to the comprehensive Pro Research Report covering this and 1,400+ other US stocks through an InvestingPro subscription. InvestingPro research reveals additional insights about the company’s valuation and financial health, with multiple ProTips available for subscribers. Get access to the comprehensive Pro Research Report covering this and 1,400+ other US stocks through an InvestingPro subscription.

Despite net interest income (NII) guidance falling slightly below Stephens’ initial expectations, there is a belief that the forecast could prove to be conservative. Stephens projects an 8.2% year-over-year increase in NII, compared to the company’s guidance of 5%-7%. In response to these factors, Stephens has revised its 2026 operating EPS estimate for First Interstate Bancsystems to $2.94 from $3.01, alongside the reduced price target.The Overweight rating reflects Stephens’ positive outlook on First Interstate Bancsystems’ stock, indicating an expectation of the stock’s market performance to outperform the sector average over the next 12 to 18 months. The new price target of $38 suggests a potential upside from the current trading price, based on Stephens’ analysis. InvestingPro research reveals additional insights about the company’s valuation and financial health, with multiple ProTips available for subscribers. Get access to the comprehensive Pro Research Report covering this and 1,400+ other US stocks through an InvestingPro subscription.

Despite net interest income (NII) guidance falling slightly below Stephens’ initial expectations, there is a belief that the forecast could prove to be conservative. Stephens projects an 8.2% year-over-year increase in NII, compared to the company’s guidance of 5%-7%. In response to these factors, Stephens has revised its 2026 operating EPS estimate for First Interstate Bancsystems to $2.94 from $3.01, alongside the reduced price target.

The Overweight rating reflects Stephens’ positive outlook on First Interstate Bancsystems’ stock, indicating an expectation of the stock’s market performance to outperform the sector average over the next 12 to 18 months. The new price target of $38 suggests a potential upside from the current trading price, based on Stephens’ analysis.

In other recent news, First Interstate BancSystem reported a significant charge-off of approximately $49.3 million related to a single commercial and industrial loan. This exceeded the bank’s previously held specific reserve of $26.5 million. The bank also resolved a non-performing agricultural loan from the fourth quarter of 2023, receiving a full payoff of approximately $22.2 million in the fourth quarter of 2024. The bank’s next earnings report is scheduled for January 29, 2025.

In a recent development, First Interstate BancSystem announced stable Q3 earnings with a net income of $55.5 million or $0.54 per share. The bank also declared a dividend of $0.47 per share. Analyst firms Piper Sandler and Barclays (LON:BARC) revised their earnings per share estimates for the upcoming years, with Piper Sandler reducing its price target to $36 from $38, and Barclays maintaining its price target of $32.

DA Davidson upgraded the bank’s shares from Neutral to Buy, setting a price target of $42.00, citing the new CEO’s appointment as a significant positive development. The leadership change is expected to drive a focus on organic growth and more consistent reporting and credit results, moving away from mergers and acquisitions. These recent developments indicate a company navigating transitional periods, with a focus on continued growth and margin expansion into 2025.

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