First Citizens' Shares Drop 8.5% After Raymond James Lowers Price Target and EPS
Raymond James lowered its price target on First Citizens BancShares to $2,350 from $2,440 after Q4 results, cutting its 2026 EPS estimate by $7.86 to $182.96 and its 2027 EPS forecast by $7.98 to $213.30 due to tighter net interest margins and higher operating expenses. On January 26, shares plunged 8.5% following the guidance, prompting the analyst to call it a unique buying opportunity.
1. Q4 results prompt price target adjustments
On January 26, First Citizens BancShares reported Q4 results that led Raymond James to lower its price target to $2,350 from $2,440 while retaining a Strong Buy rating and TD Cowen to cut its target to $2,500 after core EPS of $51.27 topped forecasts but pre-tax pre-provision income fell short.
2. Analysts revise multi-year EPS forecasts
Raymond James trimmed its 2026 EPS estimate by $7.86 to $182.96 and its 2027 estimate by $7.98 to $213.30, citing a smaller projected balance sheet, tighter net interest margins, reduced loss provisions, higher noninterest income and increased operating expense guidance for incremental investments.
3. Share price reaction creates buying opportunity
Shares plunged 8.5% compared with a 2.2% drop in the banking index on the guidance revisions, and the analyst described the selloff as a unique entry point for investors eyeing long-term upside.