Truist Securities initiates coverage on First BanCorp stock with Buy rating

Investing.com - Truist Securities initiated coverage on First BanCorp (NYSE:FBP) with a Buy rating and a $25.00 price target on Thursday. The $3.44 billion market cap bank currently trades at 11.4x earnings and offers a 3.34% dividend yield, according to InvestingPro data.

The research firm cited First BanCorp’s high level of excess capital as a key factor in its positive outlook, noting the bank appears positioned to gain market share in Puerto Rico as it expands its presence on the island.

Truist Securities also highlighted the bank’s strategic focus on growth in the Florida market, complementing its core Puerto Rico operations.

The firm expects First BanCorp to return approximately 100% of its capital through dividends and share repurchases in coming years, which Truist believes gives FBP the highest long-term return potential.

Truist characterized First BanCorp’s management team as "generally conservative with a high bar for potential acquisitions on the mainland in the future." Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued, with additional insights available in the comprehensive Pro Research Report.

In other recent news, First BanCorp reported its financial results for the second quarter of 2025, revealing a mixed performance. The company exceeded earnings expectations with an earnings per share (EPS) of $0.50, outperforming the projected $0.46. Despite this positive earnings surprise, First BanCorp experienced a revenue shortfall, reporting $246.81 million in revenue, which fell short of the anticipated $251.5 million. These developments reflect the company’s ongoing financial dynamics. While the earnings beat might be seen positively, the revenue miss indicates areas needing attention. Investors and analysts will likely keep a close watch on how First BanCorp addresses these discrepancies in future quarters.

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