Analyst Ratings Coverage
The Latest Analyst ratings for First Republic stock from today’s reports:
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- Maxim Group downgraded the stock from a previous rating to a “Hold” rating.
- Wedbush Securities increased their target price for the stock to USD 8.
- Citigroup resumed coverage on the stock and rated it as “Sell” with a target price of USD 11.
- Janney Montgomery Scott downgraded the stock from a previous rating of “Sell” with a target price of USD 10 to a new target price of USD 8.
- Barclays maintained their “Equal-Weight” rating on the stock but lowered their target price from USD 17 to USD 15.
- Piper Jaffray Companies maintained their “Neutral” rating on the stock but lowered their target price from USD 15 to USD 13.
FRC Stock Analysis & Forecast
First Republic Bank Regroups After Turbulent Q3 2023
First Republic Bank has reported stable deposits in Q3 2023 following an unprecedented decline in March, which resulted in a boost to liquidity and a reduction in borrowings. The bank managed to retain over 97% of its client relationships despite the challenges faced in the past two months.
To reduce its reliance on short-term borrowings, First Republic Bank is focusing on increasing insured deposits and decreasing loan balances. The bank also plans to cut expenses by reducing its workforce by approximately 20% to 25% during the second quarter. Despite these changes, First Republic Bank remains committed to providing exceptional client service, maintaining consistently high credit quality, and fostering opportunity within its communities.
Stock Target Advisor’s analysis, based on forecasts from 28 analysts, indicates an average target price of USD 17.00 for First Republic Bank over the next 12 months. The bank’s average analyst rating is “Hold,” and Stock Target Advisor’s own analysis rates the stock as “Neutral,” with 7 positive and 7 negative signals. The stock price has undergone significant fluctuations, with a 21.77% increase over the past week, a 29.45% increase over the past month, and an 89.81% drop over the last year.
With 7 buy, 5 sell, and 16 hold ratings, First Republic Bank’s stock is considered a “Hold” by 28 analysts. Stock Target Advisor’s fundamental analysis also rates the stock as “Neutral.” Despite a dividend yield of 3.15%, First Republic Bank may not be a strong dividend stock for its sector, as its yield is graded F.
The stock’s price-to-earnings ratio is 1.50, which suggests it may be undervalued compared to its sector. With a market capitalization of USD 2.58 billion and an average target price of USD 17.00, First Republic Bank’s stock price is projected to increase by 6.25% over the next 12 months, according to analyst estimates.
As First Republic Bank navigates through a turbulent period, its strategy to reduce expenses and focus on insured deposits may be vital in stabilizing its financial position and promoting future growth.
