MYFW Stock Forecast & Price Target

First Western Financial Inc. has demonstrated robust growth in key financial metrics, with deposits increasing by 2% and a notable rise in loan growth of 7%, significantly outperforming industry averages. The company experienced a 9% quarter-over-quarter increase in net interest income (NII) and an uptick in net interest margin (NIM) to 2.45%, driven by reduced deposit costs, indicating improved profitability. Looking ahead, the outlook remains strong with expectations for continued NIM expansion into 2025, supporting anticipated positive earnings per share (EPS) growth as revenue further increases.

First Western Financial Inc. is experiencing challenges that contribute to a negative outlook, as evidenced by a projected price target of $22.50, reflecting a decline in valuation metrics from prior estimates primarily due to a credit overhang and weaker profitability compared to peers. The company has reported a 4.2% decline in core fees, indicating struggles in its mortgage segment, while expectations of potential operating leverage have been tempered by concerns over revenue growth and profitability falling short of prior estimates. Additionally, the risk of overpayment for acquisitions poses a further threat to the company's valuation and earnings per share, compounding the negative financial outlook.