FCNCA Stock Forecast & Price Target

First Citizens BancShares Inc. has demonstrated strong quarterly performance, marked by notable growth in loans and deposits, particularly within the SVB segment, which saw a 5.6% increase quarter-over-quarter. The company benefits from favorable balance sheet dynamics and increasing net interest income (NII) driven by solid core growth, resulting in expectations of positive earnings per share (EPS) growth resuming in 2025 and accelerating into 2026. Additionally, the firm is advancing buybacks, which account for 3.5% of shares, and is well-positioned to take advantage of a long-term higher interest rate environment, suggesting sustained financial health and potential for further value creation.

First Citizens BancShares is facing significant downside risks, particularly related to pressures on its balance sheet and net interest income (NII) growth, which are compounded by macroeconomic uncertainties, including the potential for fluctuating interest rates and slower loan growth. The bank's current trading multiple of 13x NTM EPS is notably higher than its historical average of 10.5x following the global financial crisis, suggesting that the stock may be overvalued relative to past performance. Additionally, non-interest expenses are anticipated to range between $5.05 billion and $5.2 billion due to necessary investments in regulatory readiness and technology, which could further strain profitability amidst a challenging economic environment.