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First Citizens Bancshares Among 'Biggest Potential Winners' Of US Elections, Says Bullish Analyst

Benzinga ·  Dec 9 12:13

First Citizens Bancshares Inc (NASDAQ:FCNCA) shares have climbed more than 50% year to date.

The company is one of the "biggest potential winners" after the U.S. presidential elections, according to Deutsche Bank.

Analyst Bernard von-Gizycki initiated coverage of First Citizens Bancshares with a Buy rating and a price target of $2,600.

The First Citizens Bancshares Thesis: First Citizens has been a "serial acquirer" and is poised to benefit from the pro-growth, pro-business environment as it supports an uptick in bank M&A (mergers and acquisitions), von-Gizycki said in the initiation note.

Check out other analyst stock ratings.

5 Reasons For Optimism, Says Analyst

  1. First Citizens is poised to benefit from "a likely more favorable backdrop starting in 2025 and should benefit from deregulation efforts."
  2. It is well positioned to benefit from a ramp-up in capital markets activity, which will drive loan growth in the SVB Commercial segment.
  3. The company's capital levels are strong, which supports share repurchases
  4. There is an upside to the current net interest income estimates, "given asset sensitivity and moderating rate cut assumptions."
  5. First Citizens has balance sheet flexibility to navigate different rate environments.

FCNCA Price Action: Shares of First Citizens Bancshares are down 0.23% to $2,191.54 at the time of publication on Monday.

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Photo: Courtesy First Citizens

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