First Citizens (FCNCA): Balancing Growth Potential with Industry Challenges

First Citizens BancShares, Inc. (NASDAQ:FCNCA) is one of the best affordable long term stocks to buy according to hedge funds. On January 26, Raymond James’ David Long lowered its price target on First Citizens BancShares, Inc. (NASDAQ:FCNCA) to $2,350 from $2,440 and kept the Strong Buy rating on the stock. Long took this action only hours after the company released its Q4 financial results.

After First Citizens reported the earnings, its shares fell about 8.5%, compared to a 2.2% decline in the broader banking index (BKX), noted Long. He linked this market reaction to the bank’s 2026 outlook, particularly its net interest margin and operating expense guidance. The analyst described the sell-off as a unique buying opportunity.

Given First Citizens’ Q4 earnings, Long said his firm has reduced its 2026 EPS estimate by $7.86 to $182.96. Its 2027 EPS estimate was also slashed by $7.98 to $213.30. And these revised estimates, the analyst said, are underlined by several factors, including a smaller projected balance sheet, tighter net interest margin, reduced loss provision expectations due to better credit metrics, increased noninterest income outlook, and higher operating expense projections for incremental investments in 2026.

On the same day, January 26, TD Cowen cut its price target on First Citizens $2,500 from $2,600 but maintained its Buy rating on the stock. And just like Raymond James, TD Cowen made the adjustment in light of First Citizens’ Q4 2025 earnings. The firm said that although First Citizens’ core earnings per share of $51.27 exceeded analyst expectations, the pre-tax pre-provision income disappointed.

First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a North Carolina-based financial holding company that operates through First Citizens Bank. The bank provides retail and commercial banking services, including lending, deposits, wealth management, and treasury solutions.

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Disclosure: None. This article is originally published at Insider Monkey.