In a report released today, Feddie Strickland from Janney Montgomery upgraded FB Financial (FBK – Research Report) to a Buy, with a price target of $35.50.
Feddie Strickland’s Buy rating for FB Financial’s stock (FBK) is rooted in a series of beneficial aspects noted in the company’s performance and growth strategies. Strickland was impressed by FB Financial’s improved profitability, attractive valuation, and strategic footprint based in Tennessee, which is demographically appealing. The analyst also commended the company’s positive operating leverage, achieved over consecutive years.
Furthermore, Strickland highlighted the importance of the company’s expense initiatives, which are projected to reduce Core Bank Expenses, with full cost savings of $20M to be realized in 2024. The report also noted the potential benefits of securities restructuring and loan repricing, both of which are expected to boost Net Interest Income (NII). A positive projection for the Pre-Provision Net Revenue (PPNR) Return on Assets (ROA) rising from 1.44% in 2023 to 1.58% in 2025 also contributed to the Buy rating. The analyst ended with a positive note on the company’s loan growth, despite being muted in the near term, the repricing benefits the Net Interest Margin (NIM) with a significant amount maturing through 4Q24 at an increased rate.
In another report released yesterday, D.A. Davidson also maintained a Buy rating on the stock with a $34.50 price target.
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FB Financial (FBK) Company Description:
FB Financial Corp. is a bank holding company, which provides commercial and consumer banking services to clients in select markets primarily in Tennessee, North Alabama and North Georgia, through its subsidiary. It operates through the Banking and Mortgage segments. The Banking segments deals with interest on loans and investments, loan-related fees, originations in banking footprint, investment services and deposit-related fees. The Mortgage segment originates from fees and gains on sales in the secondary market of mortgage loans that originate outside Banking footprint or through internet delivery channels and from servicing. The company was founded in 1906 and is headquartered in Nashville, TN.
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