FIBK Stock Forecast & Price Target

First Interstate BancSystem Inc. is anticipated to benefit from upward earning asset repricing momentum, which is expected to support further net interest margin (NIM) expansion. With a successful completion of the credit review effort, the company has shifted its focus toward growth strategies, fostering a more favorable outlook for its financial performance by 2026. Additionally, the raised price target reflects increased confidence in the bank's trajectory towards achieving a tangible book value multiple of 2.0x.

First Interstate BancSystem faces a negative outlook due to potential significant economic deterioration in the Inland Northwest, which could lead to home price depreciation and worsening employment situations. This economic strain poses a risk of severe deterioration in credit quality, affecting the bank’s ability to maintain its asset quality and lending standards. Additionally, while there has been a shift in investor sentiment away from credit concerns, the underlying economic vulnerabilities remain a significant threat to the bank's financial stability and performance.